SHAMAC
JF-Expert Member
- Feb 9, 2017
- 1,343
- 3,560
What is the 'Foreign Exchange Market'?
The foreign exchange market is the market in which participants are able to buy, sell, exchange and speculate on currencies such as (tsh, $s, euro,pound, ksh,rand, and many others) .
Foreign exchange in simple language is the conversion of one country's currency into that of another. In a free economy, a country's currency is valued according to factors of supply and demand. In other words, a currency's value can be pegged to another country's currency, such as the U.S. dollar,
Foreign exchange markets are made up of
-banks,
-commercial companies
-central banks
- investment management firms
- hedge fund and
-retail forex brokers and investors.
Lets have a look on how a specific country owns/have currencies of the other country in order for forex to be undertaken/conducted.
The value of any particular currency is determined by market forces based on trade, investment, tourism, and geo-political risk.
Every time a tourist visits a country, for example, he or she must pay for goods and services using the currency of the host country. Therefore, a tourist must exchange the currency of his or her home country for the local currency. Currency exchange of this kind is one of the demand factors for a particular currency. Another important factor of demand occurs when a foreign company seeks to do business with a company in a specific country. Usually, the foreign company will have to pay the local company in their local currency.
------ Another important factor of demand occurs when a foreign company seeks to do business with a company in a specific
Usually, the foreign company will have to pay the local company in their local currency. At other times, it may be desirable for an investor from one country to invest in another, and that investment would have to be made in the local currency as well for instance shillings if inv. has 2 be made in Tz.. All of these requirements produce a need for foreign exchange and are the reasons why foreign exchange markets are so large.
In Tanzania forex is conducted by
--Dar es Salaam Stock Exchange PLC.
--All bureau de change companies in tanzania.
--Many others which i'll elaborate i detail ( one by one) my next lesson.
These are some companies where you can buy a us dollar in exchange of Tanzanian's shilling or vise versa is true,, or any other currency you know in terms of the other.
Now why have i used my time elaborating about this?
As i have tried going through my small investigation, many of us does not understand this unsecured market in tanzania, i have come through many topics in JF asking '' Biashara ambayo inamfaa mwanachuo? wengine wanauliza inayomfaa mwanafunzi,, or nna mtaji wa mill 1 nifanye biashara gani?
Forex n moja ya biashara ambazo huhitaji kutumia muda wako mwingi kuzunguka uku na kule kutafuta masoko na vitu vingine,, unaifanya ukiwa na sim yako ya mkononi tu ili kujua Tsh inapanda/inashuka?
Rate ya dollar na Rand iko vip tofauti yake inapanda/inashuka ili kukuwezesha kujua ununue hella ipi na uuze ipi? na vitu kama hivyo.
Kuna fursa nyingi sana kwenye hii biashara licha ya kuuza na kununua tu currencies......
This was only a short introduction of Forex market
MEET ME NEXT TIME IN MY PART 2 ELABORATING IN DETAIL HOW CAN YOU START, AND MANAGE THIS BUSINESS WHILE AT SCHOOL, BUSY WORKING, or DOING OTHER BUSSINESS.
Also i'll give you a story of a 23 year's old south African Millionaire SANDILE SHEZI whose Net Income now is more than R30=== more than 2MILL $==== 4BILL Tsh, who is in this business, when he was still schooling.....!!!!!
Have a nice time.
The foreign exchange market is the market in which participants are able to buy, sell, exchange and speculate on currencies such as (tsh, $s, euro,pound, ksh,rand, and many others) .
Foreign exchange in simple language is the conversion of one country's currency into that of another. In a free economy, a country's currency is valued according to factors of supply and demand. In other words, a currency's value can be pegged to another country's currency, such as the U.S. dollar,
Foreign exchange markets are made up of
-banks,
-commercial companies
-central banks
- investment management firms
- hedge fund and
-retail forex brokers and investors.
Lets have a look on how a specific country owns/have currencies of the other country in order for forex to be undertaken/conducted.
The value of any particular currency is determined by market forces based on trade, investment, tourism, and geo-political risk.
Every time a tourist visits a country, for example, he or she must pay for goods and services using the currency of the host country. Therefore, a tourist must exchange the currency of his or her home country for the local currency. Currency exchange of this kind is one of the demand factors for a particular currency. Another important factor of demand occurs when a foreign company seeks to do business with a company in a specific country. Usually, the foreign company will have to pay the local company in their local currency.
------ Another important factor of demand occurs when a foreign company seeks to do business with a company in a specific
Usually, the foreign company will have to pay the local company in their local currency. At other times, it may be desirable for an investor from one country to invest in another, and that investment would have to be made in the local currency as well for instance shillings if inv. has 2 be made in Tz.. All of these requirements produce a need for foreign exchange and are the reasons why foreign exchange markets are so large.
In Tanzania forex is conducted by
--Dar es Salaam Stock Exchange PLC.
--All bureau de change companies in tanzania.
--Many others which i'll elaborate i detail ( one by one) my next lesson.
These are some companies where you can buy a us dollar in exchange of Tanzanian's shilling or vise versa is true,, or any other currency you know in terms of the other.
Now why have i used my time elaborating about this?
As i have tried going through my small investigation, many of us does not understand this unsecured market in tanzania, i have come through many topics in JF asking '' Biashara ambayo inamfaa mwanachuo? wengine wanauliza inayomfaa mwanafunzi,, or nna mtaji wa mill 1 nifanye biashara gani?
Forex n moja ya biashara ambazo huhitaji kutumia muda wako mwingi kuzunguka uku na kule kutafuta masoko na vitu vingine,, unaifanya ukiwa na sim yako ya mkononi tu ili kujua Tsh inapanda/inashuka?
Rate ya dollar na Rand iko vip tofauti yake inapanda/inashuka ili kukuwezesha kujua ununue hella ipi na uuze ipi? na vitu kama hivyo.
Kuna fursa nyingi sana kwenye hii biashara licha ya kuuza na kununua tu currencies......
This was only a short introduction of Forex market
MEET ME NEXT TIME IN MY PART 2 ELABORATING IN DETAIL HOW CAN YOU START, AND MANAGE THIS BUSINESS WHILE AT SCHOOL, BUSY WORKING, or DOING OTHER BUSSINESS.
Also i'll give you a story of a 23 year's old south African Millionaire SANDILE SHEZI whose Net Income now is more than R30=== more than 2MILL $==== 4BILL Tsh, who is in this business, when he was still schooling.....!!!!!
Have a nice time.
