Additionally, there is also needs to assess on what are so special in the foreign exchange market, which can simply explains its interesting aspects before reaching to its functions, with referencing attach to Citibank.
Before beginning to discuss about the functions of Foreign exchange dealing room, with sighting referencing with Citibank, there is need in a nutshell to know about the history of the bank as far back to its initial take up. It is found that "On June 16, 1812, with $2 million of capital, City Bank of New York (now Citibank) opened for business in New York City. Through many different leaders and economic environments over the course of its rich history, Citibank continues to grow and prosper.
In 1998, all Citicorp divisions merged with all divisions of Travelers Group to form Citigroup Inc. Citibank continue as a strong brand under the Citigroup umbrella". (Citibank NA). Today, the Citibank has about 200 million account customers in more than 100 countries globally.
It is ranked in the world Market that Citibank is leading globally in the foreign exchange (citiFX) market, as the team of experts in that field always ensures that they meet the customer's needs. While dealing with the Citibank, it is confirmed that you will be able to get feedback constantly about the issue of foreign exchange, which relates to International, regional and the local market. You will also getting details on the position of current financial market, so one can take immediate decision at the exact time needed.
Moreover, it is noted that the Citibank (Customer Advantage) is of great good in terms of attaching customer's priority. According the Bank statement, "Citibank's financial market customer proposition is based on fair pricing, rapid execution, 24-hour delivery and innovative solutions. These services are delivered in the context of long-term relationships that pre-empt new customer needs for liability management, yield enhancement and implementation of market views.
Citibank offers a diverse portfolio of products
It's very significant to start with the definition of Foreign Exchange; this deals with instrument such like papers and currencies, notes and including checks, to make payment between countries of the world. These instruments include financial security of any kind, like treasury bills, capital market securities and many others are the instrument referring about…
It has traditionally performed the role of converting one currency into another (Madura, 2009). It is consistent with the principles of market economy laid down by Adam Smith, according to which the value or price of a currency is determined by the market forces of demand and supply.
The Bretton Woods agreement was developed in New Hampshire in 1944. The major outcomes of the agreement were the formation of an International Monetary fund. The system proposed the introduction of a pegged foreign monetary exchange rate system that was adjustable.
the price of one currency in terms of another currency. The trading between currencies takes place in the foreign exchange market. Till today, FOREX is the biggest financial market in the whole world. The trading between the different banks like the central banks, the large banks, the multinational corporations, the trading between governments of different countries and other financial markets takes place in the FOREX market only.
No doubt, our reading of the latest literature leads us to terminate that, in difference by the profession's consensus scrutiny of the 1980s, official intervention can be effectual, particularly from side to side its role as a signal of policy intentions, and particularly when it is publicly proclaim and concerted.
Manufacturing operations in a country with highly unstable foreign exchange is ultimately exposed to foreign exchange risk. The depreciation or appreciation of exchange rate in any of the two countries, the domestic as well as international market, would have a significant impact on the firm's revenues and future cash flows.
The stakes involved with investments as posed by the currency vacillations have escorted many finance investment mediums to loan mostly in dollars and Euros (Young et al, 2008). Whilst this run through of escorting in crucial currency defends the investors, it budges the Foreign Exchange stakes to the finance organizations that implement the hard currency liabilities to fund the portfolios of the loans denominated in its domestic currency (Young et al, 2008).
While these finаnciаl innovаtions hаve аssisted business enterprises in hedging risk, they hаve аlso creаted conditions for heightened finаnciаl frаgility on аn internаtionаl scаle.
The rаpid growth of the derivаtives
According to the research findings, the foreign exchange market is a decentralized interaction between buyers and sellers of currencies that determines the relative worth of currencies. It would be impossible to have foreign trade and investment without the existence of such markets that facilitate the conversion of one currency into another.
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