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Foreign exchange market in India with NPR Finance Ltd

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  1. Introduction to the Foreign Exchange market
    1. Introduction
    2. History
    3. Forex terms
    4. Functions
    5. Nature
    6. Types
    7. Limits
  2. R.B.I. Guidelines to the Foreign Exchange Market
    1. Current Guidelines
    2. Latest Guidelines
  3. Introduction to the NPR Finance Limited
    1. Introduction
    2. History
    3. Present Situations
    4. Business Policy
    5. General Information
    6. Corporate Information
    7. Organizational structure
    8. Branches
  4. Foreign Exchange Market In India
    1. Introduction
    2. LERMS
    3. Exchange Rate System
    4. Exchange Rate System In India
    5. Factors affecting exchange rates
    6. Factors affecting to Indian rupees
  5. Foreign Exchange Risk In India
    1. Export or Import of Goods
    2. External Commercial Borrowing
  6. Research Methodology
    1. Introduction
    2. Research Objective
    3. Research Problem
    4. Data Collection
    5. Data Analysis
    6. Findings
  7. Suggestions
  8. Conclusion
  9. Bibliography

The Foreign exchange market is a market for converting the currency of one country into that of another country. An exchange rate is simply the rate at which one currency is converted into another. Without the foreign exchange market, international trade and international investment on the scale that we see today would be impossible; companies would have to resort to batter. The foreign exchange market is the lubricant that enables companies, based in countries that use different currency, to trade with each other.

International trade and investment have their risks. The rate at which one currency is converted into another can change over time. One function of foreign exchange market is to provide some insurance against the risks that arise from changes in exchange rats, commonly referred to as foreign exchange risk. Although the foreign exchange market offers some insurance against foreign exchange risk, it can not provide complete insurance it is not unusual for international businesses to suffer loses because of unpredicted changes in exchange rates currency fluctuations can make seemingly profitable trade and investment deals unprofitable, and vice versa.

[...] Expectations of the foreign exchange market FOREX SUPPLY AND DEMAND The forces that drive FX rate fluctuations are the changes in the supply and demand of currencies. Moving away from the equilibrium FX rate creates pressure on the currency to return to that rate. This pressure results in an appreciation or a depreciation of a currency. Supply of FCY comes from exports and capital inflow. Supply and demand of a nation's currency are captured in a national account called the balance of payment (BOP). [...]


[...] RBI would buy/sell US Dollars through it will enter into Dollar swaps Rupees made fully convertible on current from August 20th Foreign Exchange Management Act FEM Bill 1998, which was placed in the Parliament to replace FERA Implication of FEMA start LERMS: (The Liberalized Exchange Rate Management System) The Liberalized Exchange Rate Management System (LERMS) was introduced in March 1992, and as a result the foreign exchange market in India effectively became a two-tire one, with a dual exchange rate system in force. [...]


[...] on HISTORY OF THE GLOBAL FOREIGN EXCHANGE MARKET The Foreign Exchange market, also referred to as the "Forex" or market is The largest financial market in the world, with a daily average turnover of US$ 1.9 trillion 30 times larger than the combined volume of all U.S. equity Markets. "Foreign Exchange" is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for Example Euro /WE Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY) .There are two reasons to buy and sell currencies. [...]

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