Foreign exchange market in Russia
market consists of 5 segments: investment, loan, stock, insurance, foreign exchange markets. In my report I would like to describe foreign exchange market in Russia. The foreign exchange market (FOREX market) is a global decentralized market for the trading of currencies. FOREX market is the most liquid financial market in the world. Traders include large banks, central banks, institutional investors, currency speculators, corporations, governments, other financial institutions, and retail investors. Foreign exchange is an over-the-counter market where brokers negotiate directly with one another, so there is no central exchange.average daily turnover in the global foreign exchange and related markets is continuously growing. According to experts of the Swiss bank UBS AG daily turnover over-the-counter interbank currency exchange in 2010 was about $ 4 trillion dollars. By 2020, the daily turnover is projected to increase to $ 10 trillion dollars. This growth is achieved by the constant increasing of new members, the growth of speculative component (independent of the world's foreign trade) and the use of new technologies. The biggest geographic trading center is the United Kingdom, primarily London. However the biggest trader by overall volume is Deutsche Bank. It `s market share more than 15% .10 currency traders% of overall volume, May 2013
RankCountryNameMarket share1GermanyDeutsche Bank <# «justify"> ten currency traders are situated in 4 countries: Germany, the USA, the UK and Switzerland. The explanation can be this one: banks in the USA, German and in the UK hold currencies with the highest turnover (US dollar, Euro and pound sterling). German is European financial center, especially according euro. As for Swiss banks, they have the reputation of the most reliable in the world. Also Swiss franc has a very low inflation rate and stays rather neutral to the US dollar and Euro exchange rate. Swiss Franc is considered as world reserve currency.developed foreign exchange market is an important condition for the internationalization of the national currency. All participants must spend conversion operations quickly and with minimal costs. From this perspective, the ruble looks quite favorable. Russia has foreign exchange market with institutional structure and modern technology trade. Currency trading is mainly conducted in a decentralized market, but there is also a well-established stock exchange MICEX-RTS (Moscow Interbank Currency Exchange - Russian Trade System). There is foreign exchange market turnover by currency in table.
national currency euro ruble
. 1 - USD - US dollar; EUR - euro; JPY-yen; GBP - pound sterling; AUD - Australian dollar; CHF - Swiss franc; CAD - Canadian dollar; MXN - Mexican peso; CNY - Chinese Yuan; NZD - New Zealand dollar; SEK - Swedish krona; RUB - Russian ruble; HKD - Hong Kong dollar
Russian ruble has a very small share in global currency turnover. The main problems are inflation and economic potential of the country. Russia has the highest inflation among 20 world economies that `s why it is not profitable to buy and keep ruble. Currencies with high turnover are freely convertible currencies while Russian ruble is partly convertible. However, the share increased from 0,9% to ...
