Tuesday, March 09, 2010

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Commercial companies One Commercial companies One of the most important players in this market are real sector companies to be bought with foreign currency various types of goods or services. However their impact on the market, at least in the short term, is small. As has been mentioned earlier, trade flows are an important factor in long-term direction of a coin. Multinational companies can have an unpredictable impact when their positions, often very large, have been covered due to exposures that are not widely known by other market participants. Central banks also play an important role in foreign exchange markets. Its main objective is to control the money supply, inflation, and / or interest rates in the currency of the country and often impose exchange rates and often even use their reserves to stabilize the market. The expectation or rumor of central bank intervention might be enough to stabilize a currency.However, central banks do not always achieve their objectives. The market can easily overwhelm any central bank. This happened in the debacle of the 1992-93 Exchange Rate Mechanism, and more recently in Asia Pacific. Currently there are companies specializing in the participation and support to different stakeholders in this market which may offer different types of services. On the front line are the "brokers" or intermediaries, which are entities that offer the possibility of opening an account in a particular currency and through purchase and sales orders, issued under different channels, allowing the investor to earn revenue by taking advantage of fluctuating exchange value between the currencies in contrast to one another.These companies, given their importance in the financial system, are usually subject to various controls and audits, however, when speaking of the financial intermediary or "broker", it is recommended that before choosing any investigation into the strength and trajectory of the company...