Foreign Exchange Services are the exchange of one currency for another, or the conversion of one currency into another currency. Foreign exchange also refers to the global market where currencies are traded virtually around-the-clock. The term foreign exchange is usually abbreviated as "forex" and occasionally as "FX".
The forex market is the largest, most liquid market in the world with an average traded value that exceeds $1.9 trillion per day and includes all of the currencies in the world.
- India Post, with a network of more than 155,000 post offices, is best poised to offer Forex services in an efficient and economical manner.
- HDFC Bank is one of the leading providers of Forex services and through this association, India Post brings to the customers a range of Forex services in a professional and efficient manner.
- The Reserve Bank of India (RBI) has bought a net of $5.8 billion US dollars from the market in April, taking total net purchases to more than $25 billion since Rajan took charge in September 2013. The central bank is buying US dollar aggressively to serve twin purposes: to prevent an appreciation of the rupee, and to build foreign exchange reserves which contracted last year amid rating downgrade fears that triggered panic selling by overseas investors.
- Fresh inflows have further pushed up India's foreign exchange reserves by $204 million at $56,524 million during the week ended June 14. The rise was solely due to the foreign currency assets, which increased by $204 million at $53,266 million in the reporting week.
- India's foreign exchange reserves rose $203 million in the week to June 6 as Reserve Bank of India purchased dollars from the foreign exchange market to prevent volatility in exchange rate amid strong dollar inflows. The reserves rose to $312.586 billion, breaking a two week's consecutive fall.
According to the Bank for International Settlements, as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion. the preliminary global results from the 2013 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity show that trading in foreign exchange markets averaged $5.3 trillion per day in April 2013. This is up from $4.0 trillion in April 2010 and $3.3 trillion in April 2007.
The $3.98 trillion break-down is as follows:
- $1.490 trillion in spot transactions
- $475 billion in outright forwards
- $1.765 trillion in foreign exchange swaps
- $43 billion currency swaps
- $207 billion in options and other products