Decribe what and how the FOREX market works in Australia

The Foreign Exchange food market is the buying and selling of non-homogeneous currencies. The telephone flip point of the Australian ply is the price of 1 unit (1 sawbuck) expressed in ground of another specie. The 2 more than or less common legal communitys of the counterchange rate used in Australia are: *The Exchange rate against the US sawbuck *The shoot for by-weighted index (TWI) The score against the US long horse bill is strategic because merchandise of the Australian dollar in the Forex detectet is highly operose against the US dollar. The measure of the TWI is a overmuch more immaculate one. The TWI comprises of 26 unlike trading partners of Australia. Each country has a relative care in the TWI according to the amount of trade it does with Australia. This allows the up-to-dateness to be measured against many different currencies which portray a much more general and accurate exchange rate of the currency as it is an average of all the countries with an touch on on the Australian economy. When the AUD is and measured against 1 currency (the US dollar), it stooge be very misleading because it whitethorn be locomote against that concomitant currency but climb against another. Table 1: TWI Weights As at family 1997 Currency Weight (%) Japanese yen 17.9620 US dollar 16.2446 NZ dollar 6.9162 South Korean win 6.7668 Chinese renminbi 5.4598 UK pound 5.2845 New Taiwan dollar 4.3069 Singapore dollar 4.2186 German mark 3.9374 Indonesian rupiah 3.

6225 Malaysian ringgit 2.9571 Hong Kong dollar 2.8021 Italian lira 2.5644 Thai baht 2.0273 French franc 1.9487 Canadian dollar 1.7124 PNG kina 1.6493 Indian rupee 1.4501 Swedish krona 1.2040 Belgian franc 1.1802 Philippine peso 1.0560 UAE dirham 1.0280 South African rand 1.0084 Netherlands guilder 0.9831 Saudi Arabian riyal 0.9158 Swiss franc 0.7938 Total 100.0000 Supply and pray Factors We are used to idea of a cook... If you postulate to get a full essay, company it on our website: Orderessay

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