Decribe what and how the FOREX market works in Australia

The Foreign Exchange Market is the buying and selling of non-homogeneous currencies. The change rate of the Australian horse is the price of 1 unit of touchstonement (1 buck) expressed in terms of another specie. The 2 more or less common legal communitys of the exchange rate used in Australia are: *The Exchange rate against the US dollar *The trade-weighted king (TWI) The bill against the US dollar is important because trading of the Australian dollar in the Forex detectet is highly concentrated against the US dollar. The measure of the TWI is a over a great deal more accurate one. The TWI comprises of 26 contradictory trading partners of Australia. Each country has a relative bang in the TWI according to the amount of trade it does with Australia. This allows the capital to be measured against many different currencies which give a much more general and accurate exchange rate of the currency as it is an average of all the countries with an impact on the Australian economy. When the AUD is only measured against 1 currency (the US dollar), it coffin nail be very misleading because it may be displace against that particular currency but rising against another. Table 1: TWI Weights As at September 1997 Currency Weight (%) Japanese yen 17.9620 US dollar 16.2446 NZ dollar 6.9162 South Korean won 6.7668 Chinese renminbi 5.4598 UK pound 5.2845 New Taiwan dollar 4.3069 Singapore dollar 4.2186 German mark 3.9374 Indonesian rupiah 3.

6225 Malaysian ringgit 2.9571 Hong Kong dollar 2.8021 Italian lira 2.5644 Thai baht 2.0273 french franc 1.9487 Canadian dollar 1.7124 PNG kina 1.6493 Indian rupee 1.4501 Swedish krona 1.2040 Belgian franc 1.1802 Philippine pe so 1.0560 UAE dirham 1.0280 South African ra! nd 1.0084 Netherlands guilder 0.9831 Saudi Arabian riyal 0.9158 Swiss franc 0.7938 contribute 100.0000 Supply and Demand Factors We are used to thinking of a cook... If you postulate to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay