Question

Explain in detail the structure and working of Indian Foreign Exchange market.

Answer 1

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Their role includes trying and controlling the currency supply, interest rates and inflation rates. Banks are the currency exchange market participants which usually have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market.

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Answer 2

Explanation:

Their role includes trying and controlling the currency supply, interest rates and inflation rates. Banks are the currency exchange market participants which usually have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market.