Central Bank launches electronic platform for financial transactions between banks

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Central Bank launches electronic platform for financial transactions between banks

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[rtl]Editorial date: 2019/6/20 13:57 • 43 times read[/rtl]

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[size=35][size=35]Central Bank launches electronic platform for financial transactions between banks operating in Iraq[/size]
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Economie

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2019-06-20 06:32
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[size=18]The Central Bank of Iraq announced on Thursday the launch of electronic platform for financial transactions between banks operating in Iraq.

The bank said in a statement it received Alsumaria News a copy of it began the procedures for launching the platform of electronic trading between banks operating in [You must be registered and logged in to see this link.] (Interbank Market (FX, Money Market, "noting that the platform establishes an electronic financial market organization opens and facilitates the way for foreign investment in [You must be registered and logged in to see this link.] "He said.






"The platform aims to increase cooperation between banks and increase their ability to diversify financial services for their customers and attract the commercial and financial operations available in the market." 

The bank said that "within the framework of these actions, the Central Bank sponsored a technical workshop between one of the world's leading companies in the areas of financial solutions and a number of banks operating in [You must be registered and logged in to see this link.] with the support of the Association of Iraqi banks private."


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Excellent!!!!!

Foreign exchange market
From Wikipedia, the free encyclopedia



[th]Foreign exchange[/th][th]Exchange rates[/th][th]Markets[/th][th]Assets[/th][th]Historical agreements[/th][th]See also[/th]

[You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]

Foreign exchange market [You must be registered and logged in to see this link.] [You must be registered and logged in to see this link.]

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The foreign exchange market (Forex, FX, or currency market) is a global [You must be registered and logged in to see this link.] or [You must be registered and logged in to see this link.]market for the trading of [You must be registered and logged in to see this link.]. This market determines the [You must be registered and logged in to see this link.]. It includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of [You must be registered and logged in to see this link.], it is by far the largest market in the world, followed by the [You must be registered and logged in to see this link.].^{[You must be registered and logged in to see this link.]}
The main participants in this market are the [You must be registered and logged in to see this link.]. [You must be registered and logged in to see this link.] around the world function as anchors of trading between a wide range of multiple types of [You must be registered and logged in to see this link.] and sellers around the clock, with the exception of weekends. Since currencies are always traded in pairs, the foreign exchange market does not set a currency's absolute value but rather determines its relative value by setting the market price of one currency if paid for with another. Ex: US$1 is worth X CAD, or CHF, or JPY, etc.
The foreign exchange market works through [You must be registered and logged in to see this link.] and operates on several levels. Behind the scenes, banks turn to a smaller number of financial firms known as "dealers", who are involved in large quantities of foreign exchange trading. Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the "[You must be registered and logged in to see this link.] (although a few insurance companies and other kinds of financial firms are involved). Trades between foreign exchange dealers can be very large, involving hundreds of millions of dollars. Because of the sovereignty issue when involving two currencies, Forex has little (if any) supervisory entity regulating its actions.
The foreign exchange market assists international trade and investments by enabling currency conversion. For example, it permits a business in the [You must be registered and logged in to see this link.] to import goods from  [You must be registered and logged in to see this link.] member states, especially [You must be registered and logged in to see this link.]members, and pay [You must be registered and logged in to see this link.], even though its income is in [You must be registered and logged in to see this link.]. It also supports direct speculation and evaluation relative to the value of currencies and the [You must be registered and logged in to see this link.] speculation, based on the differential interest rate between two currencies.^{[You must be registered and logged in to see this link.]}
In a typical foreign exchange transaction, a party purchases some quantity of one currency by paying with some quantity of another currency.
The modern foreign exchange market began forming during the 1970s. This followed three decades of government restrictions on foreign exchange transactions under the [You must be registered and logged in to see this link.] of monetary management, which set out the rules for commercial and financial relations among the world's major industrial states after [You must be registered and logged in to see this link.]. Countries gradually switched to [You must be registered and logged in to see this link.] from the previous [You must be registered and logged in to see this link.], which remained [You must be registered and logged in to see this link.] per the Bretton Woods system.
The foreign exchange market is unique because of the following characteristics:[/ltr]

• its huge trading volume, representing the largest asset class in the world leading to high [You must be registered and logged in to see this link.];
  
• its geographical dispersion;
  
• its continuous operation: 24 hours a day except for weekends, i.e., trading from 22:00 [You must be registered and logged in to see this link.] on Sunday ([You must be registered and logged in to see this link.]) until 22:00 GMT Friday (New York);
  
• the variety of factors that affect [You must be registered and logged in to see this link.];
  
• the low margins of relative profit compared with other markets of fixed income; and
  
• the use of [You must be registered and logged in to see this link.] to enhance profit and loss margins and with respect to account size.
  

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As such, it has been referred to as the market closest to the ideal of [You must be registered and logged in to see this link.], notwithstanding [You must be registered and logged in to see this link.] by [You must be registered and logged in to see this link.].
According to the [You must be registered and logged in to see this link.], the preliminary global results from the 2016 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity show that trading in foreign exchange markets averaged $5.09 [You must be registered and logged in to see this link.] per day in April 2016. This is down from $5.4 trillion in April 2013 but up from $4.0 trillion in April 2010. Measured by value, foreign exchange swaps were traded more than any other instrument in April 2016, at $2.4 trillion per day, followed by spot trading at $1.7 trillion.^{[You must be registered and logged in to see this link.]}[/ltr]

[size=39]Interbank Market [/size]



REVIEWED BY [You must be registered and logged in to see this link.]
 
 Updated Apr 14, 2019 

What is the Interbank Market? 

The interbank market is the global network utilized by financial institutions to trade currencies between themselves. While some interbank trading is done by banks on behalf of large customers, most interbank trading is proprietary, meaning that it takes place on behalf of the banks' own accounts. Banks use the interbank market to manage exchange rate and interest rate risk.

Basics of Interbank Market 

The interbank market for [You must be registered and logged in to see this link.]serves commercial turnover of currency investments as well as a large amount of speculative, short-term currency trading. Typical maturity term for transactions in the Interbank market is overnight or six months. According to data compiled in 2004 by the Bank for International Settlements, approximately 50% of all forex transactions are strictly interbank trades.

A Brief History of the Interbank Market  

The interbank foreign exchange market developed after the collapse of the [You must be registered and logged in to see this link.] and following the decision by U.S. President Richard Nixon to take the country off the [You must be registered and logged in to see this link.] in 1971. Currency rates of most of the large industrialized nations were allowed to float freely at that point, with only occasional government intervention. There is no centralized location for the market, as trading takes place simultaneously around the world, and stops only for weekends and holidays.

The advent of the floating rate system coincided with the emergence of low-cost computer systems that allowed increasingly rapid trading on a global basis. Voice brokers over telephone systems matched buyers and sellers in the early days of interbank forex trading, but were gradually replaced by computerized systems that could scan large numbers of traders for the best prices. Trading systems from Reuters and Bloomberg allow banks to trade billions of dollar at once, with daily trading volume topping $6 trillion on the market's busiest days.

KEY TAKEAWAYS 

• The interbank network consists of a global network of financial institutions that trade currencies between each other to manage exchange rate and interest rate risk. The largest participants in this network are private banks.
  
• Most transactions within the interbank network are for a short duration, anywhere between overnight to six months. 
  
• The interbank market is not regulated.
  

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Largest Participants in the Interbank Market 

In order to be considered an interbank market maker, a bank must be willing to make prices to other participants as well as asking for prices. The minimum size for an interbank deal is $5 million, but most transactions are much larger, and can top $1 billion in a single deal. Among the largest players are Citicorp and JP Morgan Chase in the United States, Deutsche Bank in Germany and HSBC in Asia. There are several other participants in the interbank market, including trading firms and hedge funds. While they contribute to the setting of exchange rates through their purchase and sale operations, other participants do not have as much of an effect on currency exchange rates as large banks.

Credit and Settlement within the Interbank Market  

Most [You must be registered and logged in to see this link.] settle two business days after execution; the major exception being the U.S. dollar vs. the Canadian dollar, which settles the next day. This means banks must have credit lines with their counterparts in order to trade, even on a spot basis. In order to reduce [You must be registered and logged in to see this link.], most banks have netting agreements that require the offset of transactions in the same currency pair that settle on the same date with the same counterpart. This substantially reduces the amount of money that changes hands and thus the risk involved.

While the interbank market is not regulated — and therefore decentralized — most central banks will collect data from market participants to assess whether there are any economic implications. This market needs to be monitored, as any problems can have a direct impact on overall economic stability. Brokers, who put banks in touch with each other for trading purposes, have also become an important part of the interbank market ecosystem over the years.[/size]

I would say this is the MOST promising news in months of not years.

Great find Rocky