
C h a p t e r
Chapter ObjeCtives
Introduction
The foreign exchange market is a key economic process that affects many facets of life
of people wherever they dwell. It is the largest market in the world in terms of turnover.
It is estimated that the foreign exchange market turnover is more than ten times the
value of world trade in goods and services. As a world-wide network of traders, the for-
eign exchange market, colloquially known as forex market, has witnessed unprecedented
growth and changes following developments that have taken place in the world economy
over the last two or three decades. The developments, such as launching of the Wor