The international currency exchange system is a network of financial institutions and markets that enable the exchange of one currency for another. Currencies are traded through this network in pairs, with each currency being traded against another. The value of each currency is determined by the demand for it in the market.

Foreign Exchange Markets:

The foreign exchange market is where currencies are traded. Currencies are traded in pairs, with each currency being traded against another. The value of each currency is determined by the demand for it in the market.

Central Banks:

Central banks play a major role in the foreign exchange market. They intervene in the market to buy, 환전가능 꽁머니 or sell currencies in order to stabilize prices. They also set interest rates, which can impact the demand for a currency.

Commercial Banks:

Commercial banks are another important player in the foreign exchange market. They buy and sell currencies on behalf of their clients. They also provide financing for international trade.

Investment Banks:

Investment banks are another type of financial institution that trades in foreign exchange. They provide financing for companies and governments and also engage in speculative trading.

Hedge Funds:

Hedge funds are another type of financial institution that is active in the foreign exchange market. They use leverage to speculate on currency movements.

Retail Traders:

Retail traders are individuals who trade in the foreign exchange market. They make up a small percentage of the total market volume.

Non-Bank Financial Institutions:

Non-bank financial institutions are another type of player in the foreign exchange market. They include money managers, payment providers, and FX brokers.

Conclusion:

The global currency exchange system is a network of financial institutions and markets that enables currencies to be traded between different countries. The system is used to determine the exchange rate for each currency, and to facilitate international trade and investment.