Monetary exchange

The monetary exchange is a formal market of native currencies. On a monetary exchange free purchase and sale of native currencies proceeding from a course parity between them, developing on the market under the influence of a supply and demand is carried out. The special role of a monetary exchange consists that on it official rates of foreign exchanges are fixed. A monetary exchange - the exchange carrying out on a regular and ordered basis of operation with currency and spending its quotation. Trade in currency in vast scales is manufactured in modern conditions between banks in a number of the countries. Along with the interbank currency market there are also special monetary exchanges.

The monetary exchange is an element of an infrastructure of the currency market which activity consists in granting of services in the organisation and tendering in which course participants conclude transactions in foreign exchange. The monetary exchange will organise work of basic elements of an infrastructure of the currency market: trading system (a search engine of the counterpart), clearing and settlement systems (the mechanism of performance of the bargain).

There are the monetary exchanges specialising on urgent trade by currency and financial assets, - the London international financial futures exchange, the European options exchange in Amsterdam, the German terminal market in Frankfurt, the Singapore exchange, exchange of urgent trade in Sydney, the Austrian urgent options exchange in Vienna. From the economic point of view the monetary exchange is the organised participant in the exchange organised currency market. In legal sense the monetary exchange represents the legal body forming the wholesale market by the organisation and regulation of exchange trade by a foreign exchange.

The monetary exchange is a place where free purchase and sale of native currencies, proceeding from a course parity between them (quotations), developing on the market under the influence of a supply and demand is carried out. All elements of classical exchange trade are inherent in this type of exchange. Quotations at exchange depend on buying power of interchanged currencies which, in turn, is defined by an economic situation in the countries-emitters. Operations on a monetary exchange are based on a ready interchangeability, interchanged on it.

The primary goal of exchange consists not in reception of high profit, and in mobilisation of temporarily free currency resources, redistribution by their market methods of one branches of economy in others and in an establishment of the valid market quotation national and a foreign exchange in the conditions of fair and lawful trade.

Direct purpose of a monetary exchange - to define a rate of exchange which represents foreign exchange cost. However development of communication systems, mass coming of the gold standard as a result of cancellation of the Bretton-Vudsky currency system, development of tendencies of economic globalisation has led to decrease in a role of national monetary exchanges. Their place by degrees takes the global round-the-clock currency market Forex.


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Monetary exchange
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