The Importance Of Currency For The Economy

The importance of currency for the economy

The importance of currencies

The world’s foreign exchange market or called the world’s largest financial market is where the coins of different countries are exchanged and also how to exchange currencies or facilities that they can have in other countries lose and in other countries win. For example, Peru and Japan make a contract for the purchase and sale of different companies can be done in soles, in Japanese yen or in a third currency (in US dollars) in that one of the companies would have to convert its local or national currency to What the contract says.

The financial market is open 24 hours a day where currency prices are known either in their purchase or sale, the currency market is for all kinds of legal or physical people.

Development or review

The Divisa term is to talk about the money of a country or the economic system is belonging to a single country since it is even different US dollar to a Canadian or also called the financial market. It is used for the purchase and sale of goods in the financial market as it also serves for export and importation, already knowing about the currency of the country that exports or imports its products has to know if its currency has a greater or lesser value than to the Another country since you can lose 

The importance of currencies

The importance of currency is that the financial market where the coins are purchased and sell backbone of international trade and investment since it is globally.

International trade currency

The exchange of foreign exchange is important since it is the essential part of the international trade example if a Peruvian company wants to make a commercial exchange with a Chinese company in that case the two companies have to go to the currency market in order to complement the transaction that It involves the Chinese currency as well as the Peruvian currency.

Instruments used in the currency market

There are types of financial instruments that are involved in the Forex market

• Spot transactions: It is the exchange of two types of currency that the exchange is to be made to a single type of currency already on the date of the contract that could be 2 business days.
• Forwards transactions: in this case it would be that the appropriate date would be what they agreed.

Peruvian currency market

The Peruvian currency market has a growing exchange market since it has few financial agents. For different countries. Because the Peruvian spot has risen to a growth of 13% throughout the period, although in the last year it has decreased due to the cause of the economy of Peru since that affected companies.

Loss of currencies in different countries

For the rise of interest of the United States and its political and commercial situation there are several countries that are affected as Turkey that is losing about half of its value. According to experts, they say that by the entrance of Mr. Donald Trump as president of the United States, the trade war is influencing emerging countries.

Conclusions

In the conclusion, we must take into account the currency of currency because they are very important since it helps us to know and continue informing us more about currencies because it is a broad issue. Since there are variations in currencies and we must know since it is necessary for several occasions as trips thus exchange coins from different countries as well as in export imports.

References

1. Addin Mendeley Bibliography csl_bibliography Cazar, and. (2001). The international currency market basic principles. Retrieved from www.Abyayala.org
2. MEF. (2012). Financial Instruments Manual. Magazine General Directorate of Indebtedment and Public Treasury, P. 3. 4. Retrieved from https: // www.MEF.Gob.PE/CONTENTS/TREASURE_PUB/MANAGE.PDF
3. Market, m. ❙, & currencies, D. AND. (2018). Currency No. 174 16. 16–20. Retrieved from http: // www.BCRP.Gob.PE/DOCS/PUBLICATIONS/MAGAZINE/MONE.PDF
4. Montes, j. (2017). Currency ❙ finance. Retrieved from http: // www.BCRP.Gob.PE/DOCS/PUBLICATIONS/MAGAZINE/MONEA/CURRENCY-169/CURRENCY-169-08.PDF
5. RODERO FRANGANILLO, A. (2014). International finances. Social Development Magazine, 69 (275), 365–369. Retrieved from https: // login.EZ.Unisabana.Edu.CO/LOGIN?URL = https: // search.Ebscohost.com/login.ASPX?Direct = true & authtype = ip & db = fua & an = 102477134 & lang = es & site = eds-live & scope = site