--%>

Interbank currency trading

Explain, why do most interbank currency trading globally include the U.S. dollar?

E

Expert

Verified

Globally, trading in currencies is in contrast to the common currency having the international appeal. That currency has been the U.S. dollar form the end of World War II.  Though, Japanese yen and deutsche mark have started to be utilized much more as international currencies in the current years.  Also, trading could be exceedingly burden and is also complex to manage in case every trader makes a market against another currency.

   Related Questions in Financial Accounting

  • Q : Policy issued by upper management What

    What would you do when upper management issues a new policy and it was problematic to you? Would you pursue the new policy?

  • Q : Define Revenue Revenue : The amount

    Revenue: The amount (sum) of money which a company really receives throughout a specific period, comprising discounts and deductions for the returned merchandise. This is the "top line" or "annual income" figure from which costs are subtracted to find

  • Q : Claim depreciation When an asset is

    When an asset is purchased and the similar is not employed for the financial year, must the company charge the depreciation and the reason for the similar?

  • Q : Foreign commerce trade State three

    State three basic documents which are essential in order to conduct the typical foreign commerce trade?  Discuss briefly the purpose of each.

  • Q : Re-measurement and translation

    Explain the re-measurement and translation procedure in FASB 52 of translating to the reporting currency the books of the entirely owned affiliate which maintains its books in local currency of country in which it operates, that is different from its functional curren

  • Q : Determining interest rate parity

    Presently, spot exchange rate is $1.50/£ and three-month forward exchange rate is $1.52/£. Three-month interest rate is 8.0% per annum within the U.S. and 5.8% per annum within the U.K. Suppose that you can borrow as much as $1,500,000 or £1,000,000.

  • Q : Investment in Value trust What is your

    What is your recommendation concerning investment with/in the Value Trust? a.  Why do you recommend? b.  Why don’t you recommend?

  • Q : Calculate the Present Value PV Given

    Given that the appropriate discount rate is 10% and that the first of these dividend payments will occur 1 year from now, find the present value of the dividend stream; that is, calculate the PV of D1, D2, and D

  • Q : Adjunct Account What do you mean by the

    What do you mean by the term Adjunct Account?

  • Q : Case study of a hospitals Radiology

    The typical mid-sized hospital trying to keep its head above water in the increasingly tight health care market. It has determined that a critical area for it in today’s market is customer service. Until eight or nine years ago, hospital’s had a reputation