The foreign exchange market

The foreign exchange market
The Indian economy is an open economy, it is now important to broaden the discussion of the Indian financial system on an international dimension. In terms of international trade and financial flows, its openness has increased consistently over the years. India's total imports and exports in relation to its GDP varied between 9% - 17% by 1991, and it was 22.5% in 1995 - 1996.

International trade and investment would not be possible without the arrangements and mechanism for buying and selling foreign exchange, rupee because no international means of exchange. The foreign exchange market (FEM), is also required by international transactions in an open economy. It has cleared the conversion price, ie, the exchange rate, which is an important part of financial analysis. Wealth accumulated in a given country is always committed to financial institutions there.