Principle objective of this lecture is to presentation on Foreign Exchange Market. Basic definition of foreign exchange market is the market where one buys or sells the currency of a country with the currency of another country. This presentation briefly discuss on form and function of the foreign exchange market and analysis difference between spot and forward rates. Here also focus on Foreign exchange risk and the exchange market, Exchange rate forecasting and Convertibility of currencies. Finally discuss on determinants of currency exchange rates and countertrade as convertibility mitigation factor.
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