Forex

Foreign Exchange Market The Bangko Sentral ng Pilipinas (BSP) maintains a floating interchange rate system. Exchange rates argon determined on the basis of supply and demand in the foreign substitute market. The role of the BSP in the foreign exchange market is in the main to ensure orderly conditions in the market. The market-determination of the exchange rate is legitimate with the Governments commitment to market-oriented reforms and outward-looking strategies of achieving competitiveness through monetary value stability and efficiency. In the Philippines, peso- long horse trading among Bankers Association of the Philippines (BAP) member-banks and surrounded by these banks and the BSP are done through the Philippine dealings System (PDS). approximately of the BAP-member banks which participate in the peso-dollar trading use an electronic political program called the Philippine Dealing and Exchange Corp. (PDEx). The BAP appointed PDEx as the appointed service provider for the USD/PHP spot trading (which involve the buy or sale of the US dollar for immediate delivery, i.e., indoors one day for US dollars), and Reuters, as the exclusive allocator of all PDEx data. Trading through the PDEx allows nearly instantaneous transmission system of price information and trade confirmations.

1Meanwhile, banks which do not contract to PDEx can continue to deal peso-dollar spot transactions via their Reuters Dealing screens. Commercial banks in the Philippines are allowed to engage in spot, directly forward, and swap transactions in Philippine pesos/US dollar and other one-third currency transactions. 2 Interbank trading is conducted among member-banks of the BAP, and between these banks and the BSP. Member-banks of the PDS can also deal through brokers. At present, in that respect are two foreign exchange brokers in the Philippines, Tulett Prebon (Philippines), Inc. and ICAP Philippines Inc. For third currency trading, most commercial banks use the Reuters Dealing and the Bloomberg financial Services. The US dollar and Philippine... If you want to get a unspoilt essay, order it on our website: Orderessay

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