A global decentralized market for the trading ofcurrencies.

Presented by : AAYUSH AVISHAK

The foreign exchange market determines the relative values of different currencies.The foreign exchange market works through financial institutions, and it operates on several levels.

Traders- commercial banks Brokers- brokerages firmsSpeculators - long position and short positionHedgersArbitrageursgovernments

Transactions in foreign exchange were absolutely prohibited excepting in certain selected sectors. Every foreign company had to maintain Indian share of 26 percent.

FERA was repealed in 1998 and Foreign Exchange Management Act (FEMA) was enacted. No unauthorized person would be allowed to deal in foreign exchange. The authorized person could sell; draw foreign exchange from any authorized person on current Account transaction, subject to approval of R.B.I.

GLOBALISATIONEXAMPLE.

An Association of banks dealing in foreign exchange in India (typically called Authorized Dealers ADs) as a self regulatory body and is incorporated under Section 25 of The Companies Act, 1956. It's major activities include framing of rules governing the conduct of inter-bank foreign exchange business among banks vis--vis public and liaison with RBI for reforms and development of forex market.

AUTHORISED DEALERS

CATEGORY I : BANKSCATEGORY II : RRBCATEGORY III : EXIM BANK,IFCI BANK OTHERS FOREX DEALERS FFMC - BUY AND SELL FOREX RMC - ONLY PURCHASE FOREX

EXPOTERSIMPOTERSREMITANCESSTATISTICSDEALING SECTION

NOSTROVOSTROLORO