As part of treasury operations, each bank has a forex department, and it does trade in the forex market a part of these funds to earn profits for the bank. So these MNCs are very important participants in the Forex Market with a big volume and regular trades.Īs the public deposits their amount with banks, banks accumulate huge funds. Besides, for asset purchase and surplus transfer, they need to buy foreign currencies. Hence, these companies need to regularly buy foreign currency for settlement of inter-company or inter-branch liabilities. So if a company needs to deal with its other branches for trading or services, the remittances are in the local currency of that country. Being located in several countries, they have to deal with several currencies of those countries. And it has its branches in different locations of the world. Multinational CorporationĪn MNC is a company whose business interest is spread over several countries. But they can not be ignored as their trading volume in currencies may be small, but their number is large. Moreover, they have no importance in the market. Their presence or absence is insignificant or has very less impact on the forex market. These people contribute very little to the forex market because the amount they exchange is not huge, or several times it may be just a one-time need. Retail market participants include tourists, students, professionals, or patients who have traveled to other countries and need to pay for various expenses, fees, deposits, etc. We will discuss all these Forex Market Participants in this article. All this is making this market grow, and hence one must know the various players or participants in this ever-growing forex market. But the question here is, “who can be a buyer and seller in a forex market transaction?” We are seeing a large number of coupled economies now with the dawn of globalization. Generally, in any transaction, there remains a buyer and a seller. We call these fluctuating rates the foreign exchange rates. They keep fluctuating, dependent on various factors. But the rate of these currencies does not remain constant. For example, a person willing to make a payment in any currency other than his home currency has to first buy that currency in exchange for his home currency. In this market, one currency is traded for another. Here the exchange of currencies of various countries takes place amongst the various Forex Market Participants.
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