Case Study - Foreign Exchange Regulations of 3 countires and comparison with India

Case Study- - MANIPAL UNIVERSITY Case Study to Collecting information on the exchange regulations prevalent in any three countries other than India

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MANIPAL UNIVERSITY Case Study to Collecting information on the exchange regulations prevalent in any three countries other than India. Comparing them with the foreign exchange regulations in India. And analysing if India’s foreign exchange market is over-regulated by RBI / Government Submitted towards the fulfilment of the Assignment for Final Semester – Subject International Financial Management SUBMITTED BY [Anita Suvarna, Kaushik Banarjee, Ketan Chavda]
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TABLE OF CONTENTS Chapter 1  :-  Introduction Chapter 2  :-  Forex Regulation of Australia                                Chapter 3  :-  Forex Regulation of Japan   Chapter 4 :-  Forex Regulation of  Canada  Chapter 5 :-      Forex Regulation of India                                            Chapter 6 :-  Comparison of 3 countries FER                                  with India  Chapter 7 :-  Conclusion Chapter 8 :-  Bibliography
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Introduction Traditional foreign exchange instruments include spot transactions and foreign exchange swap. Average daily turnover in traditional foreign exchange market transaction totaled $2.9 trillion in April 2009 (Chart 1) The UK is the geographic centre for foreign exchange trading seconded by US. Japan and Singapore were the next largest center. Most of the remainder is accounted for by Germany, Switzerland, Australia, Canada, France and Hong Kong. Structure of the foreign exchange market A foreign exchange transaction is a transfer of funds, from one country and currency to another. The exchange rate is a price, i.e. the number of units of one currency that buys one unit of another currency. The market exchange rate is determined by the interaction of the official participants in the market (government) and private buyers and sellers. (Chart 4)  
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The foreign exchange market consists of the interbank market, customers (banks, corporations, individuals, fund managers, etc.) and derivative exchanges. The interbank market is a wholesale market which does not have a centralized location for trading. Participants in this market, mostly commercial and investment banks, trade directly with each other or through brokers. Business is conducted over the telephone or electronically. The foreign exchange market is 24-hour market. The trading day begins in Asia, extends into Europe and then into the US. In foreign exchange, every position involves buying one currency and selling another. The dollar is by far the most widely traded currency. This is because of its multiple roles: as an investment currency in many capital markets; a reserve currency for many central banks; a transaction currency in many international commodity markets; and an invoice currency in many contracts. Factors which influence an exchange rate include political and economic
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This note was uploaded on 04/16/2010 for the course FINANCE MBA taught by Professor Mrmathure during the Spring '10 term at Manipal University.

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Case Study- - MANIPAL UNIVERSITY Case Study to Collecting information on the exchange regulations prevalent in any three countries other than India

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