After studying this chapter, you should be able to:
Gain insight into developments in the world economy that have influenced the foreign exchange market.
Delve into the nature and operations of the foreign exchange market.
Understand the meaning of foreign exchange rates and the process of quoting such rates.
Distinguish between spot trading and forward trading.
Understand the concept of cross rates.
Explain the process of arbitraging.
Understand the meaning of nostro, vostro, and loro accounts.
Analyse the relationship between forward rates and future spot rates.
Discuss trends in foreign exchange trading and look at the major communications networks for ...