Foreign Exchange Market free essay sample

Globally, operations in the foreign exchange market started in a major way after the breakdown of the Bretton Woods system in 1971, which also marked the beginning of floating exchange rate regimes in several countries. Over the years, the foreign exchange market has emerged as the largest market in the world. The decade of the 1990s witnessed a perceptible policy shift in many emerging markets towards reorientation of their financial markets in terms of new products and instruments, development of institutional and mar ket infrastr ucture and realignment of regulatory structure consistent with the liberalised operational framework. The changing contours were mirrored in a rapid expansion of foreign exchange market in terms of participants, transaction volumes, decline in transaction costs and more efficient mechanisms of risk transfer. 6. The origin of the foreign exchange market in India could be traced to the year 1978 when banks in India were permitted to undertake intra-day trade in foreign exchange. We will write a custom essay sample on Foreign Exchange Market or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page However, it was in the 1990s that the Indian foreign exchange market witnessed far reaching changes along with the shifts in the currency regime in India. The exchange rate of the rupee, that was pegged earlier was floated partially in March 1992 and fully in March 1993 following the recommendations of the Report of the High Level Committee on Balance of Payments (Chairman: Dr. C. Rangarajan). The unification of the exchange rate was instrumental in developing a market-determined exchange rate of the rupee and an important step in the progress towards current account convertibility, which was achieved in August 1994. 6. 3 A further impetus to the development of the foreign exchange market in India was provided with the setting up of an Exper t Group on Foreign Exchange Markets in India (Chairman: Shri O. P. Sodhani), which submitted its report in June 1995. The Group made several recommendations for deepening and widening of the Indian foreign exchange market. Consequently, beginning from January 1996, wide-ranging reforms have been undertaken in the Indian foreign exchange market. After almost a decade, an Internal Technical Group on the Foreign Exchange Mar ket (2005) was constituted to undertake a comprehensive review of the measures initiated by the Reserve Bank and identify areas for further liberalisation or relaxation of restrictions in a medium-term framework. 6. 4 The momentous developments over the past few years are reflected in the enhanced risk-bearing capacity of banks along with rising foreign exchange trading volumes and finer margins. The foreign exchange market has acquired depth (Reddy, 2005). The conditions in the foreign exchange market have also generally remained orderly (Reddy, 2006c). While it is not possible for any country to remain completely unaffected by developments in international markets, India was able to keep the spillover effect of the Asian crisis to a minimum through constant monitoring and timely action, including recourse to strong monetary measures, when necessary, to prevent emergence of selffulfilling speculative activities (Mohan, 2006a). . 5 Against the above background, this chapter attempts to analyse the role of the central bank in developing the foreign exchange market. Section I provides a brief review of different exchange rate regimes being followed in emerging mar ket economies (EMEs). Section II traces the evolution of India’s foreign exchange market in line with the shifts in India’s exchange rate policies in the postindependence period from the pegged to the ma rket determined regime. Various regulatory and policy initiatives taken by the Reser ve Bank and the Government of India for developing the foreign exchange market in the market determined set up have also been highlighted. Section III presents a detailed overview of the current foreign exchange market structure in India. It also analyses the available market infrastructure in terms of market players, trading platfor m, instr uments and settlement mechanisms. Section IV assesses the performance of the Indian foreign exchange market in terms of liquidity and efficiency.

Free Essays on Willis Reed

â€Å"Willis Reed† As a Hall of Famer, Willis Reed was born on June 25, 1942 in Bernice Louisiana. As a youngster, Willis Reed began to play basketball and that’s when he began to make a name for himself. By the time, Willis got into high school in Lillie Louisiana from 1956-1960. While playing basketball at West Side High, Willis Reed had achieved many accomplished and honors. He was named All-State in 1956-1960, and All Conference. After his many accomplishments in High School, Reed went to Grambling State University, in Grambling Louisiana from 1960-1964. With his many skills in basketball, Reed moved up to receiving much college highlights much like his highschool accomplishments. To name only a few, Willis Reed led Grambling to the NAIA national championship as a freshman in 1961, led Grambling to the 1963 and 1964 NAIA Final Four, led Grambling to three Southwest Conference titles. While receiving all his nominations, he also received the All-NAIA Tournament Team in 1963-1964, All-America in 1963-1964. In addition, while casting his many skills on the Basketball Court, Reed scored 2,280 pts. (18.7) in 122 games, including 26.6 ppg. as a senior. Reed was later enshrined in NAIA Basketball Hall of Fame in 1970. Willis Reeds journey did not stop in college, he was later entered into the pros in 1964-1974 years, playing with the New York Knicks. As a professional player, Reed’s outstanding performance advanced while in the National Basketball Association Family. In 1965, Willis Reed was named Rookie of the Year. As a rookie into the professions, Reed averaged 14.7 rpg. Willis Reed continued to receive honors for his outstanding skills on the basketball court. With all his many talents as a player, upon retirement in 1974, Willis Reed furthered his career as a college and professional coach from 1977-1989. While being a pro-coach, Reed was nominated with hi ghlights for having a 82-124 record as a NBA head coach and in his... Free Essays on Willis Reed Free Essays on Willis Reed â€Å"Willis Reed† As a Hall of Famer, Willis Reed was born on June 25, 1942 in Bernice Louisiana. As a youngster, Willis Reed began to play basketball and that’s when he began to make a name for himself. By the time, Willis got into high school in Lillie Louisiana from 1956-1960. While playing basketball at West Side High, Willis Reed had achieved many accomplished and honors. He was named All-State in 1956-1960, and All Conference. After his many accomplishments in High School, Reed went to Grambling State University, in Grambling Louisiana from 1960-1964. With his many skills in basketball, Reed moved up to receiving much college highlights much like his highschool accomplishments. To name only a few, Willis Reed led Grambling to the NAIA national championship as a freshman in 1961, led Grambling to the 1963 and 1964 NAIA Final Four, led Grambling to three Southwest Conference titles. While receiving all his nominations, he also received the All-NAIA Tournament Team in 1963-1964, All-America in 1963-1964. In addition, while casting his many skills on the Basketball Court, Reed scored 2,280 pts. (18.7) in 122 games, including 26.6 ppg. as a senior. Reed was later enshrined in NAIA Basketball Hall of Fame in 1970. Willis Reeds journey did not stop in college, he was later entered into the pros in 1964-1974 years, playing with the New York Knicks. As a professional player, Reed’s outstanding performance advanced while in the National Basketball Association Family. In 1965, Willis Reed was named Rookie of the Year. As a rookie into the professions, Reed averaged 14.7 rpg. Willis Reed continued to receive honors for his outstanding skills on the basketball court. With all his many talents as a player, upon retirement in 1974, Willis Reed furthered his career as a college and professional coach from 1977-1989. While being a pro-coach, Reed was nominated with hi ghlights for having a 82-124 record as a NBA head coach and in his...