Tag Archives: Foreign exchange
Basic concepts in Foreign Exchange
Meaning:
The term foreign exchange is popularly referred to as the currencies of other countries. To an Indian, US Dollar is a foreign currency just as Indian Rupee to an American. Mr X, an Indian, receives a remittance of (say) USD 1000 from...
DFA and Volcker rule (Proprietary Trading)
Federal Regulators in the United States are moving ahead with a rule that would ban banks from trading for their own profit.
This rule – popularly known as Volcker Rule – is covered under Section 619 of Dodd Frank Act and contains two broad...
OTC Derivatives Products – An overview
The expression ‘over the counter – OTC’ can be used to mean financial instruments that are traded between counterparties (dealers) either directly or through broker network. This operation is different from operations in centralized exchanges...
What needs to be done to arrest the falling Indian Rupee?
In every country prices are expressed in units of its currency. The value of the currency itself however can be judged only against an external reference. This reference, the exchange rate, thus becomes the fundamental price in any economy.
Exchange...
Gold – Weights & Measures Pricing
The traditional unit of weight for Gold is the Troy Ounce of the Anglo Saxon system of weights and measures.
Despite the gradual conversion to the metric system, the troy ounce remains a traditional fixture of the Gold trade and the most important...
Greediness faciliated by slack regulation leads to banks’ downfall
Jerome Kerviel former employee Societe Generate, the author of 4.9 billion Euros loss for the bank has claimed now that his superiors knew of his risky bets. (Source Ruadhan Mac Cormaic in Paris). He also claims his superiors turned a blind...
Strategies for Stock exchanges to succeed
Setting:
According to Chris Skinner “There’s plenty of innovation in banking right now, from investment through commercial to retail banking. ………… But some innovators create new business models at the expense of the incumbents...
Fundamentals and basic instincts drive FX Markets
Bank for International Settlements, Basel, Switzerland conducts triennial central bank survey on foreign exchange and derivatives market activity. The last such survey was conducted in April 2010. As per the findings of this survey, Global Foreign...
Financial Technology Assets Monetization
I recall with pride the ‘commencement’ of my banking career as an apprentice under the legendary Indian Foreign Exchange Banker Mr. Anthony Silveira in the correspondent banking section attached to the International Division of my former...
Investment banking and revenue pressures – ways to go
Setting: One of the purposes of any business is to make money. And banking is no exception to this cardinal objective of any business.
Normally the bank’s income portfolio comprises fund based income and fee based income.
Fund based income...
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