Valuutatehingud

Valuutatehingud refer to the buying and selling of currencies. These transactions are a fundamental part of international trade, investment, and tourism. The exchange rate, which is the price of one currency in terms of another, fluctuates constantly based on various economic and political factors.

The foreign exchange market, often abbreviated as Forex or FX, is the global marketplace where these transactions occur. It is the largest and most liquid financial market in the world. Participants include banks, corporations, governments, and individual investors.

Valuutatehingud can be performed for several reasons. Businesses engage in them to pay for imports, receive payments for exports, or hedge against currency risks. Investors use them to speculate on future currency movements or to diversify their portfolios. Tourists exchange currency for travel expenses.

There are different types of currency exchange. Spot transactions involve the immediate exchange of currencies at the current market rate. Forward transactions are agreements to exchange currencies at a specified future date at a rate agreed upon today. Currency futures and options are derivative contracts that allow participants to manage currency risk.

The value of a currency is influenced by factors such as interest rates, inflation, political stability, economic growth, and trade balances. Central banks often intervene in the foreign exchange market to manage their currency's value. Understanding these dynamics is crucial for anyone involved in international financial activities.