Futures, Forwards and Option markets

A forward market for currencies enables a Multi-National Corporation (MNC) to lock in the exchange rate (forward rate) at which they would buy or sell a currency. A forward contract specifies the amount of a particular currency that would be purchased or sold at a future point in time. Commercial banks and MNC’s would desire […]

International Monetary System

It is normally concerned with the following;- Exchange rate regimes International liquidity I.e. the value and composition of reserves, the adequacy of sale results among others. The international monetary fund, its resolution, role and functions. The adjustment process i.e. how does the system facilitate with the process of copying with payment imbalances between trading nations. […]