Retail or client market and wholesale or interbank market

Distinguish between retail or client market and wholesale or interbank market for foreign exchange?

E

Expert

Verified

Market for the foreign exchange seemed as the two-tier market.  One tier is wholesale or interbank market and the other one is retail or client market.  International banks offer the core of FX market.  They behave as willing in order to buy or sell the foreign currency for their own account.  These international banks may serve their retail clients, individuals or corporations, in performing foreign commerce or forming the international investment within the financial assets which needs foreign exchange.  Retail transactions account only for about 16 percent of the FX trades. Other 84 percent is the interbank trades between international banks, or some non-bank dealers who are large enough to transact within the interbank market.

   Related Questions in Financial Accounting

  • Q : History of Holding Period Describe the

    Describe the History of Holding Period in brief?

  • Q : Historical Cost of Liabilities State

    State the Historical Cost of Liabilities?

  • Q : Asian firms building the production

    Since NAFTA was developed, several Asian firms particularly those from the Korea and Japan has made the extensive investments in the Mexico. Why do you think these Asian firms decided to build the production facilities in the Mexico?

  • Q : Double taxation Specify some of the

    Specify some of the methods taxing authorities utilize to remove or diminish evil of double taxation?

  • Q : Special drawing rights Discuss how the

    Discuss how the special drawing rights (SDR) are formed. And also, explain the circumstances due to which SDR was created.

  • Q : Abnormal profits Atypically large

      Atypically large proceeds made by an individual or company from commercial activity. An abnormal profit exceeds the normal chance for profit derived from labor costs and capital and considered normal profit. Abnormal profit in a business resides of monopoly and consortium profits.

  • Q : Imports and exports of U.S Give some

    Give some remark over the given statement: “As imports of the U.S. is more than its exports, it is essential for U.S. to import the capital from foreign countries in order to finance its current account deficits.”

  • Q : Write a Matlab function Fourbar Write a

    Write a Matlab function Fourbar (r1,r2,r3,r4,theta,speed) that animates three cycles of a fourbar linkage having link lengths r1, r2, r3, r4. The function first checks to ensure the mechanism isGrashof (including the change-point c

  • Q : Objective Questions on Sociology 1)

    1) Which large European city declined significantly in population over the past century? A) Paris B) London C) Rome D) Madrid 2) The industrial city was characterized b A) decentralization B) corporate growt

  • Q : Psychological Health Psychological

    Psychological Health: The employees have noted in their survey feedbacks that their peer relations are based on trust and are healthy. But the nature of work is such that they see lot of suffering. Their interaction with clients at times is not health

©TutorsGlobe All rights reserved 2022-2023.