forex
TRANSCRIPT
By V.SaravananI Year MBA
Anna University Coimbatore
EMERGING TRENDS IN FOREX MARKET
FACTOR X In The 3rd Quarter Of 2004, Buffett
Posted Profits Of $412
Million........Because of Factor X Bill Gates May Have Been Following His Friend Warren Buffett's Advice.... As He Began His
Investments in Factor X Bill Gates Was 2006‘s..World's Richest Man….
George Soros Made His Name...By Earning $1 Billion On… 1 Day, In 1992; It Is Estimated That Soros Has Made $7 Billion In The 3 Decades
From 1969 To 1999! Due to Factor X
FOREXDemocratic Market
For the Money ,By The Money ,To the Individual
With Capitalistic Idea
Let Money to do More For us
FACTORS INFLUENCE FOREX MARKET
FOREX
MARKET
Market
System
Economy
GOVT POLICI
ES
Social
GLOBAL FOREX MARKETGlobal Forex Volume Surged to 36% growth during the 2006-2007.
Consistent Double Digit Growth in volume.
Highest liquidity: Daily global trading volumes would likely reachUS$5 trillion In 201
Deal flow in the foreign exchange market is increasingly transacted electronically.
An annual turnover more than 10 times world GDP
Source: BIS Triennial Survey 2007
Factors that Drives the Forex Market In Indian Context
Market & Forex Market System
Govt Policies
Economic Shift
Social Trends
Lucrative Nature of Forex Marketchronos and Kairos Phenomenon • 24/5, offers convenient trading• Forex exchange is the largest financial
market in the world , over $3 trillion in trades every day
• Liquidity factor due to large number of Trader base globally
• Optimum Leverage , Margin accounts in Forex Ranges from 100:1 to 200:1.
• Minimum Trade Accounts • Lucrative ROI in Short Term. Profit booking in both ends during rise
as well as fall
Government Policies
In Indian Context, Central Govt acts as an Facilitator in increasing Global transaction.
• Complete Liberalization Pricing And Payment Methods
• Separate Governing Body like Foreign Investment Promotion Board to clear proposals of around $358.3 million.
• Monetary Policy Favoring Forex By containing Inflationary Pressures.
• Foreign Exchange Reserves of India rose to $2.79 billion for the week ended April from earlier $2 billion mark, Retains the Forex Market More Active.
Govt Policies
• In 2009 Exim Bank extend 20 lines of credit covering 20 countries to support export projects, in total 114 Countries.
• 16 corporate were assisted to invest in 11 countries aggregating investments of around Rs.2,338 Cr by Exim Bank in 2009.
• Approval from SEBI to commence operations in currency futures, Across four pairs of currencies US dollar-rupee; Euro-rupee; Pound Sterling -rupee and Japanese Yen-rupee widens the Exposure of Foreign Exchange Market.
• The Extensive Run Of Equity Market also Favors the Forex Marketing to Mark able Highs
• Budding brokerage Firms Also an Exact Phenomenon for Developing Financial markets in India
“64 Indian cos display consumer products at Canton fair”
Paves Way For increased Global Transactions.
Economic ShiftGovt has given its nod for $157.89 million FDI .Acts as a
stimulus for FOREX Market India Witnessed 56 % Jump ON FDI on YoY basis.Appreciation of Rupee acts as an mobilizing factor Forex in
Indian context. currency gained 11.7% in the past year against the dollar.GDP of 8-9% ,Favors the FDI,FII portfolio in India shows the
attractive location for FOREX.Corrective action against inflationary pressures restores the
inflation in control through hikes of interest Rates in significant Phases Mobilizes the FOREX.
WPI Inflation expects to slow down by 6% percents by the year end , Insists the progression of Economy
Moderate Inflation Favors the Investment Activities in a Developed Economy
In 2009,the FDI in emerging Markets accounts 51.6% of global FDI (Ernst & young survey on Globalization).This fact plays a
Vital force for the Forex Market
Social TrendsInvestors Confident analysis by JPMorgan Reveals
that 48% retail investors expected growth in income looking forward for investment opportunities.
70%of Corporate believes improvement in Profits.The young and Risk Taking Population of India lead
to investor Population.Society Comprising the Half Billion salaried
Population acts as an open source for investment ,About 7 million people possess the Demat Account. Shows the increased awareness of the Investment in India.
Increasing NRI population increases the Currency transaction activities to larger extent.NRI deposits for April- June 2009 around $849 million and outflow $167million .Shows the huge Potential of India FOREX Market.
India enjoyed the Highest salary hike in the world of around 15.2 % on an average 9-10% YoY basis .Enhances the investment opportunities in the society-Quantum Of Disposable income Increased
Increased Entrepreneurial Attitude also Favors the Capital Market
Social Trends
ConclusionThe Combined Force Of - Global Equity Market - Economy Growth
- Increased Foreign Investment - Foreign Transaction
Acts as Combined growth drivers of FOREX Market in India
From the Current 16th Position in Global FOREX Market to Further Highs.
References
BIS Triennial Survey 2007
Data On Salary,Payscale.Inc.,Ernst & Young Survey on Globalization Jp Morgan Investor Confidence SurveyRBI GDP Report & FDI .WW.Eximbank.Org.ww.fxmarket.com
Let Money To Do more For US