Printer Friendly| Balance of Payments | Effects of Imbalances in Trading Accounts |
| Effects of Exchange Rate of Balance Payments |
| Effects of Adjustment Mechanisms | Exchange Rates Factors |
Companies involved with international trade have no control of FX
market movements.
These are buffeted by the vagaries of:
- Confidence in the currency
- Macro economic factors
- Political issues
- Commercial positions of banks
- Speculation
- Limiting factors such as central bank intervention and exchange controls
- Rates of inflation
- Interest rates
- Relative
purchasing power of the currencies, etc
With so many influences on the Spot Rate of exchange it is often difficult even to guess the direction of a currency movement, let alone the extent and duration of such movement.
If you are importing or exporting, for expert commercial foreign exchange services, speak to us at Raphael's Bank.
Quick and easy foreign exchange deals via our branch network, treasury centres or over the Internet.
More information.