The Foreign Exchange Market

Foreign Exchange Market is the financial and currency system of relationships through which runs the actual buying and selling foreign currency account or buying and selling of foreign currency , denominated in foreign currencies.

This activity of sale of currency / foreign currency trading is a specific genre, and in this case is treated as a commodity currency.

The currency market is represented by institutions like :

-banks authorized to participate in specific trade (authorization is made by the Central Bank)

-authorized exchange houses

-other foreign financial institutions that are authorized for this purpose

When the exchange rate is unilaterally established by the monetary authority is called tender. On the market you also encounter the terms of exchange rate for sale and exchange to purchase. They indicate the price at which it buys or sells a currency by a bank or exchange office (exchange house).

The introduction of certain coins, like euro , will produce profound changes on the financial markets and it will influence the competition between the dollar and the euro.

The following countries, in which the euro is the official currency, are collectively known as the Eurozone: Austria , Belgium , Cyprus , Estonia , Finland , France , Germany , Greece , Ireland , Italy , Luxembourg , Malta , Netherlands , Portugal , Slovakia , Slovenia and Spain.

The euro (currency sign €) was first adopted on 1 January 1999. Euro notes and coins came into circulation on 1 January 2002. One euro is divided into 100 cents. The official abbreviation/code for the euro is EUR. By 2009 the euro had surpassed the US dollar as the currency with the largest combined value of cash in circulation (over €750 billion).

COINS: Each euro coin has the European Union flag on one side, and on the reverse a national symbol of one of the participating countries, such as the King of Spain on Spanish euros and the Queen of the Netherlands on Dutch coins. Any coin can be used in any of the participating countries, regardless of the national symbol. There are eight euro coins in the following denominations:

NOTES : Euro notes feature images of gateways and bridges to symbolise Europe's architectural heritage and the idea of union. Euro notes are exactly the same in all participating countries. There are seven euro notes in the following denominations:

THE SYMBOL : The symbol for the euro is like a round E with two horizontal parallel lines. The inspiration for this symbol was the Greek letter epsilon (a reference to Greece as the foundation of European civilisation). The parallel lines are intended to represent the euro's stability.