The Basics of Foreign Exchange Markets

Preface

Let’s learn about foreign exchange markets. These markets exist because there are many different monies used throughout the world. As a consequence, individuals often find it necessary to exchange monies for one another. Markets where such exchanges occur are foreign exchange markets.

Increased globalization of the world economy means that most people either participate directly or are indirectly impacted by activities in foreign exchange markets. This book provides the reader with an introduction to how these markets work. The approach is analytical, and draws upon the close relationship between foreign exchange markets and underlying monetary standards.

For the last four decades, most countries have employed a fiat money standard along ...