Professional Documents
Culture Documents
Of
Foreign Exchange Dealers Association of India
Technical Sub-Committees
a. Forex Markets
b. Trade & other transactions
c. Advisory Committee
d. Guidance Committee
e. Renovation Committee
f. Special Committee
The foreign exchange market (forex, FX, or currency market) is a
worldwide decentralized over-the-counter financial market for the trading of
currencies. Financial centers around the world function as anchors of trading
between a wide range of different types of buyers and sellers around the clock,
with the exception of weekends. The foreign exchange market determines the
relative values of different currencies.
The primary purpose of the foreign exchange market is to assist international
trade and investment, by allowing businesses to convert one currency to another
currency. For example, it permits a US business to import British goods and
pay Pound Sterling, even though the business's income is in US dollars. It also
supports speculation, and facilitates the carry trade, in which investors borrow
low-yielding currencies and lend (invest in) high-yielding currencies, and which
(it has been claimed) may lead to loss of competitiveness in some countries.
FEDAI continues to receive valuable inputs and suggestions from the. Local
Committees on various guidelines of Reserve Bank of India and other agencies,
duly discussed at the Local Committee meetings.
FEDAI guidelines play an important role in the functioning of the markets and
work in close coordination with Reserve Bank of India (RBI), other
organizations like Fixed Income Money Market and Derivatives Association
(FIMMDA), the Forex Association of India and various other market
participants.
a) Review of the Annual Policy Statement for the year 2008- 2009
The Chairman, Vice Chairman, Additional Vice Chairman and the Chief
Executive participated, by invitation, in the meetings convened by Reserve
Bank of India on the eve of the announcement of Governor’s Annual Policy
Statement and subsequent reviews.