Central Bank calls for banks to get the right to sell the U.S. dollar
(FULL ARTICLE &LINK BELOW)
Great article, I like all the changes starting tomorrow;
*** "The bank has decided to open the door to all banks for window sell the currency from the beginning of next year."
1) "window"; is a banking term for international window transactions in most cases.....
.... a) Forward Contracts; forward window contract....the transaction is settled during a "window" of time between two dates ....... see below
.... b) Swaps; are another form of windows, ...... see below
.... c) Forex; Forex traders use forwards and swaps..... see below
2) "sell the currency"; is selling the USD international, getting it out of the country even faster IMO
3) " the beginning of next year " ; A GREAT TIME TO MAKE A BIG CHANGE .......TO ME THESE LOOKS LIKE A PART OF A NEW MONETARY CHANGE.......
Read More Link On Right
Types of Foreign Exchange Transactions By W D Adkins, eHow Contributor
At its simplest, currency exchange is just the buying of the currency of one country with the currency of another country. Individuals, businesses and traders all engage in various types of foreign currency exchange transactions.
Some participants in currency exchange do so as part of business dealings while others speculate on the foreign exchange (Forex) market in hopes of profiting off of exchange rate fluctuations. The main types of foreign currency exchange transactions they employ are described below.
Basic Currency Exchange
If you've ever traveled to a foreign country, chances are you've used some of your cash to buy euros, yen or whatever the local currency was. The price you paid was determined by the exchange rate between the two currencies.
Your purchase is an example of the most basic type of foreign currency exchange transaction.
Currency exchange rates change continuously, mainly in response to demand for one currency relative to others. Demand for a currency in turn is affected by many factors, including differences in interest rates, inflation and monetary policy.
Financial institutions and businesses frequently want to protect themselves against possible losses due to changes in exchange rates.
The forward contract is a way of doing this. A forward contract is like a futures contract except it is a private agreement, rather than an exchange-traded security.
In forwards, one party agrees to buy (or sell) a foreign currency from (or to) another party. The currency is delivered at a future date at a predetermined price. A variation of this is the forward window contract. Instead of delivery on a specific date, the transaction is settled during a "window" of time between two dates.
Suppose you are a businessperson who needs euros to do some business in Europe, but all you have are U.S. dollars. You don't want to convert to euros and run the risk of losing money if exchange rates go the wrong way. A currency swap is your solution.
You simultaneously borrow euros from someone else (usually a currency dealer) and lend your dollars to the other party. You can use the euros as you see fit until a specific date. Then you return the euros and get your dollars back at a predetermined exchange rate.
Most of the volume of trading on the Forex market actually is generated by speculators, not as part of other business activity. Forex traders use forwards and swaps.
The basic Forex trade, however, is a simple currency exchange but with one crucial difference. When a Forex trader buys one currency for another, it is a margin transaction.
This means the trader puts up only a little money (often less than $1,000 for a $100,000 lot of currency). With extreme leverage like this, even small changes in currency exchange rates mean big profits or big losses. This makes Forex trading very attractive to many people but also very risky.
Forex options work like any other options contract. A trader pays a premium to a Forex dealer for an option to buy or sell a currency at a specific strike price. If the exchange rate moves in the trader's favor before the option expires, she can exercise the option for a profit.
If the exchange rate doesn't move the right way enough to cover the premium paid, the option will expire and the trader loses her money. Unlike stock options, the buyer of a Forex option contract may choose the strike price and expiration date
FULL ARTICLE & LINK: Central Bank calls for banks to get the right to sell the U.S. dollar
BAGHDAD / obelisk: stressed the Central Bank of Iraq, Monday, he was in the process of opening the door to get the right to sell the dollar for all Iraqi banks.
The governor of the Central Bank and Abdul Basit Turki Agency for "obelisk", "The bank has decided to open the door to all banks for window sell the currency from the beginning of next year."
Turki added, "This decision will reduce the effort on the citizen to go to currency outlets will reduce the momentum would also bring the principle of justice for all private banks wishing to deal selling the currency to citizens."
". Turki pointed out that "the bank will receive applications from private banks as of next Wednesday."
And regulates the Iraqi Central Bank auction of five meetings weekly from Sunday to Thursday for the sale and purchase of foreign currency, and receive a cash commission on the sale and transfers of about 13 dinars per dollar