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International Economic Market

Bailing Out the Guilty

Mostly innocent tax payers are being forced to bail out the bankers who are guilty of causing the global recession and financial crisis. Introduction: There is an old joke which perfectly sums most people’s feelings about helping out the bankers. It is a little risqué.  ... More >>

Expanding Currency Knowledge > International Economic Market

Managing Risk or Creating Risk

Retail traders manage risk by creating a workable trading strategy which enables them to control risk rather than creating risk. Introduction: The forex market is the biggest and most liquid market in the world and as such is subject to high volatility and as a consequence is a risky mark... More >>

Expanding Currency Knowledge > International Economic Market

Europe and the Financial Crisis

The financial crisis in Europe is a sovereign debt crisis rather than a crisis stemming from the economic downturn of 2008. Introduction: Europe is made up of 45 countries of which 27 are in the European Union which was formed in 1993. Of these 27 countries, 17 of these are in the Eurozon... More >>

Expanding Currency Knowledge > International Economic Market

History of Foreign Exchange

The history of foreign exchange spans the pre and post Bretton Wood years. Before money became the official standard of exchange people exchanged goods and services through barter. It wasn’t until the establishment of paper money and a set of standard characteristics for money in all co... More >>

Expanding Currency Knowledge > International Economic Market

Understanding the International Monetary Fund

Founded in the early 1940’s, The International Monetary Fund (IMF) is not a bank as many people believe it is in fact an organization comprising of 187 countries around the world. All these countries in order to become a member of the IMF have agreed in principle to further global monetary ... More >>

Expanding Currency Knowledge > International Economic Market

Becoming Familiar with the Major Central Banks

The major central banks of the world have a huge influence on the financial markets of the world. All the major central banks have a primary mandate which is common to all of them and that is price stability within the markets and inflation monitoring. However, each central bank has a slightly di... More >>

Expanding Currency Knowledge > International Economic Market

The Role of the Swiss National Bank in the International Economy

The Swiss National Bank has played an important part in the establishment of the Swiss currency and is also responsible for the stability of the Swiss Franc in the international economy. Before the bank was empowered the monetary system in Switzerland was complicated by the fact that any number o... More >>

Expanding Currency Knowledge > International Economic Market

The ECB’s Role in Maintaining Market Price Stability

The European Central bank has many operational principles but the most important one is that the operational framework of the ECB ought to maintain monetary policy. Monetary policy is the process by which a central bank seeks to control the supply of money, the availability of money and the cost ... More >>

Expanding Currency Knowledge > International Economic Market

Plain Vanilla Foreign Currency Swaps

The plain vanilla currency swap is the exchange of the principle amount and interest payments on a loan in one particular currency for a principle amount and interest payments on a comparable loan in another currency. The currency swap is different from the interest rate swap in that the principl... More >>

Expanding Currency Knowledge > International Economic Market

The Significance of the ECB's Role on the European Economy

The European Central Bank plays an important role in stabilizing the European economy and preventing severe injury to the smooth running of the euro money and currency markets. When there is tension in the markets and liquidity dries up, the ECB steps in and provides overnight liquidity to th... More >>

Expanding Currency Knowledge > International Economic Market

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