25.5 FOREIGN EXCHANGE MARKET
25.5.1 Distinctive Features
The foreign exchange market, where different currencies are bought and sold, does not denote a particular place. Rather it is an over-the-counter market. It consists of trading desks at major agencies dealing in foreign exchange throughout the world that are connected by telephones, telex, etc. Again, it is a round-the-clock market meaning that transactions can take place at any time in a 24-hour day. This is necessary because different countries are located at different longitudes. If an Indian bank buys dollars at 12 A. M., it will be midnight in the USA. From this point of view, the foreign exchange market has to operate round-the-clock.
foreign exchange market is classified either ...