Factors causing foreign exchange volume growth

[Nadilapars]

 

The foreign exchange market is now regarded as the largest market in the world. The success of the market is because it deals in the only asset in the world that has complete market liquidity: money.

The foreign exchange market deals in the trading of currency. This involves buying one currency and exchanging it for another.

The value of currencies relative to each other is constantly fluctuating. It allows people to gain a profit by buying a currency during a period of stability. Then they sell it if the value of the currency rises.

The Dollar is often considered to be the most stable currency. However, this once highly regarded currency seems to be experiencing a downward trend.

Reasons for depreciation of the Dollar

Several factors have resulted in the depreciation of the American dollar after an unexpected foreign exchange volume growth of currencies exchanged in the market.

Recently, America has made certain economic and political moves that many countries considered to be hostile. In addition, America’s political strategies have had the opposite effect in certain countries where it was trying to gain political power. An example of this is America’s involvement in the lifting of sanctions against Iran. America’s under the table economic war against Iran has always been linked to nuclear weapons. The United States used its powerful economy and its status as the world’s major cultural exporter to leverage Iran’s abolition of its developing nuclear program.

 

For More Detail : Factors causing foreign exchange volume growth