Organizations That Affect The Foreign Exchange Market
In addition to political factors, unemployment, economic factors, etc., did you know that some organizations also affect the volatility of the exchange rate market?
The speeches of relevant important organizations or their leaders represent the organization’s view and evaluation of the economy or the market, and it is also one of the reasons why it affects the market trend. The following are important organizations that affect the global exchange rate market, such as:
International Monetary Fund (IMF)
For the intergovernmental international financial organization. It purpose to promote consultation and coordination among member countries on international currency issues; to promote exchange rate stability and orderly exchange rate arrangements, so as to avoid competitive exchange rate depreciation.
Group of Eight (G8)
It is composed of the United States, the United Kingdom, France, Germany, Italy, Canada, Japan and Russia, but Russia has been frozen since 2014, so it was renamed G7. The eight countries mainly coordinate their views and positions on international political and economic issues.
Organization of the Petroleum Exporting Countries (OPEC)
The purpose of OPEC is to safeguard the interests of oil-producing countries, maintain crude oil prices and production levels. Oil, gold and the US dollar are important strategic resources in the world, so the oil policy of the Organization of the Petroleum Exporting Countries is closely related to the rise and fall of the US dollar exchange rate.
The European Central Bank (ECB)
The role of the European Central Bank is to maintain currency stability, manage the prevailing interest rates, the reserves and issuance of currency, and formulate European monetary policy.
Federal Reserve (Fed)
The Federal Reserve is the central bank of the United States. The Federal Reserve will hold a monetary policy meeting every month to analyze the collected news and other relevant economic information, and to make an assessment of the current and future economic situation. Due to the dominant position of the US economy in the world, it often has a greater impact on the foreign exchange market.
United States Department of the Treasury
The U.S. Treasury Department is responsible for handling the fiscal affairs of the U.S. federal government, collecting taxes, issuing bonds, repaying debts, and supervising currency issuance.
Ministry of Finance, Japan
The Ministry of Finance of Japan is the most active member of the foreign exchange market and is responsible for yen policy and foreign exchange market intervention. The Bank of Japan was originally an agency under the Ministry of Finance, responsible for printing money, setting interest rate policy and solving other financial problems. Every time the Ministry of Finance decides to intervene in the foreign exchange market, the Bank of Japan deploys the intervention in the foreign exchange market using more than 20 selected banks.
Investors who are interested in the foreign exchange market can pay more attention to the speeches and actions of the above organizations, which will affect the exchange rate!
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