Foreign Exchange Markets

Foreign Exchange Markets: The major players in foreign exchange markets are banks, large commercial enterprises, national central banks, hedge funds, investment management firms, retail traders, and individual investors.

National central banks and hedge funds are the two most influential participants in the foreign currency market.

Central banks trade on the market for a variety of reasons. Two examples are to stabilize their own currencies, or to synchronize their interest rates with other national interest rates.

Central banks also trade on the foreign currency market to manipulate their currency in order to manage economic influences like inflation, and to control the supply of money.

Tags: currencies, currency market, Economic Influences, Exchange Banks, Foreign Currency, foreign exchange markets, hedge funds, Individual Investors, inflation, Investment Management Firms, money, National Central Banks, National Interest Rates, Participants, retail traders

Posted in Foreign Exchange Market, Forex Bank