Foreign Exchange Market free essay sample

Globally, operations in the foreign exchange market started in a major way after the breakdown of the Bretton Woods system in 1971, which also marked the beginning of floating exchange rate regimes in several countries. Over the years, the foreign exchange market has emerged as the largest market in the world. The decade of the 1990s witnessed a perceptible policy shift in many emerging markets towards reorientation of their financial markets in terms of new products and instruments, development of institutional and mar ket infrastr ucture and realignment of regulatory structure consistent with the liberalised operational framework. The changing contours were mirrored in a rapid expansion of foreign exchange market in terms of participants, transaction volumes, decline in transaction costs and more efficient mechanisms of risk transfer. 6. The origin of the foreign exchange market in India could be traced to the year 1978 when banks in India were permitted to undertake intra-day trade in foreign exchange. We will write a custom essay sample on Foreign Exchange Market or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page However, it was in the 1990s that the Indian foreign exchange market witnessed far reaching changes along with the shifts in the currency regime in India. The exchange rate of the rupee, that was pegged earlier was floated partially in March 1992 and fully in March 1993 following the recommendations of the Report of the High Level Committee on Balance of Payments (Chairman: Dr. C. Rangarajan). The unification of the exchange rate was instrumental in developing a market-determined exchange rate of the rupee and an important step in the progress towards current account convertibility, which was achieved in August 1994. 6. 3 A further impetus to the development of the foreign exchange market in India was provided with the setting up of an Exper t Group on Foreign Exchange Markets in India (Chairman: Shri O. P. Sodhani), which submitted its report in June 1995. The Group made several recommendations for deepening and widening of the Indian foreign exchange market. Consequently, beginning from January 1996, wide-ranging reforms have been undertaken in the Indian foreign exchange market. After almost a decade, an Internal Technical Group on the Foreign Exchange Mar ket (2005) was constituted to undertake a comprehensive review of the measures initiated by the Reserve Bank and identify areas for further liberalisation or relaxation of restrictions in a medium-term framework. 6. 4 The momentous developments over the past few years are reflected in the enhanced risk-bearing capacity of banks along with rising foreign exchange trading volumes and finer margins. The foreign exchange market has acquired depth (Reddy, 2005). The conditions in the foreign exchange market have also generally remained orderly (Reddy, 2006c). While it is not possible for any country to remain completely unaffected by developments in international markets, India was able to keep the spillover effect of the Asian crisis to a minimum through constant monitoring and timely action, including recourse to strong monetary measures, when necessary, to prevent emergence of selffulfilling speculative activities (Mohan, 2006a). . 5 Against the above background, this chapter attempts to analyse the role of the central bank in developing the foreign exchange market. Section I provides a brief review of different exchange rate regimes being followed in emerging mar ket economies (EMEs). Section II traces the evolution of India’s foreign exchange market in line with the shifts in India’s exchange rate policies in the postindependence period from the pegged to the ma rket determined regime. Various regulatory and policy initiatives taken by the Reser ve Bank and the Government of India for developing the foreign exchange market in the market determined set up have also been highlighted. Section III presents a detailed overview of the current foreign exchange market structure in India. It also analyses the available market infrastructure in terms of market players, trading platfor m, instr uments and settlement mechanisms. Section IV assesses the performance of the Indian foreign exchange market in terms of liquidity and efficiency.

Free Essays on Deforestation In Brazils Amozon Rainforest

Deforestation in Brazil’s Amazon Rainforest The Amazon rainforest is an ecosystem that holds an extremely diverse array of plants and animals. It is located in the northern and central portion of South America, mainly in Brazil. It took thousands of years for it to become the way it is, and it stood peacefully up until last century. People began cutting it down for the economical advancement of their country, many people are still unaware of the impact this will cause. Some of the reasons deforestation occurs are population growth and logging. These reasons benefit Brazil’s economy, unfortunately they are in turn devastating the earth’s environment. We must stop deforestation; the rainforest is home to millions of creatures and it acts like a filter for the entire planet. The biggest issue concerning deforestation in Brazil and the Amazon is an economic one. When an economically struggling country has a choice between logging a forest to sell timber for high profits and leaving the forest intact without monetary compensation, the nation usually chooses the profitable alternative. This is because immediate economic gains are more important than future environmental costs (Miller, 1987, 59). Brazilians believe that it is in their best interest to cut into the forest to provide economic support for Brazil. However, rapid deforestation is rarely in the economic interest of the country concerned. When environmentalists show their concern over the loss of the rainforest, Brazilians get annoyed. They believe the arguments for preserving the forests are a â€Å"rich man’s luxury.† They are mainly concerned with the country’s need to improve its people’s living standards and accommodate the growing population. The combination of bad policies, population growth, and poverty makes the rainforest issue a difficult problem to solve. Poor people use mainly wood as fuel, and no one really seems to care about the government re... Free Essays on Deforestation In Brazil's Amozon Rainforest Free Essays on Deforestation In Brazil's Amozon Rainforest Deforestation in Brazil’s Amazon Rainforest The Amazon rainforest is an ecosystem that holds an extremely diverse array of plants and animals. It is located in the northern and central portion of South America, mainly in Brazil. It took thousands of years for it to become the way it is, and it stood peacefully up until last century. People began cutting it down for the economical advancement of their country, many people are still unaware of the impact this will cause. Some of the reasons deforestation occurs are population growth and logging. These reasons benefit Brazil’s economy, unfortunately they are in turn devastating the earth’s environment. We must stop deforestation; the rainforest is home to millions of creatures and it acts like a filter for the entire planet. The biggest issue concerning deforestation in Brazil and the Amazon is an economic one. When an economically struggling country has a choice between logging a forest to sell timber for high profits and leaving the forest intact without monetary compensation, the nation usually chooses the profitable alternative. This is because immediate economic gains are more important than future environmental costs (Miller, 1987, 59). Brazilians believe that it is in their best interest to cut into the forest to provide economic support for Brazil. However, rapid deforestation is rarely in the economic interest of the country concerned. When environmentalists show their concern over the loss of the rainforest, Brazilians get annoyed. They believe the arguments for preserving the forests are a â€Å"rich man’s luxury.† They are mainly concerned with the country’s need to improve its people’s living standards and accommodate the growing population. The combination of bad policies, population growth, and poverty makes the rainforest issue a difficult problem to solve. Poor people use mainly wood as fuel, and no one really seems to care about the government re...

Lasting Essay Example | Topics and Well Written Essays - 250 words

Lasting - Essay Example â€Å"Lost Your Head Blues† is a blues song popularized by Bessie Smith in 1926. It is composed in an AAB format, characteristic for blues songs. This song is written based on a â€Å"vaudeville† or solo stage performance, which is very common during the 1920s. The songs talks about painful relationships and difficult circumstances. The song reflects the typical musical taste and genre of the African American population and heritage. â€Å"Lost Your Head Blues† uses only three instruments: piano, vocals, and trumpet. Most blues songs are composed or played using these musical instruments because during the vaudeville times or stage style blues period, these instruments are nearly ubiquitous because of the rise of the ragtime music in the 1920s. The song starts with an introduction of a trumpet with an accompanying piano that combines with the singer’s voice. The trumpet makes some bending of tones and melodic layback. On the other hand, â€Å"Erlkonig† is typically sung or played using vocals or piano or both as it was originally adapted, particularly by Franz Schubert. Nevertheless, nowadays, this song is performed in a concerto-style performance with a soloist, usually a soprano, accompanied by a symphony