Summary of Navigating the Waters of Foreign Exchange and International Payments

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Navigating the Waters of Foreign Exchange and International Payments summary
The massive but largely invisible foreign exchange market dwarfs global stock and bond markets.


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You wouldn’t know it by reading the financial news, but the foreign exchange market is a huge and growing enterprise that undeniably dwarfs global stock and bond markets. In an interconnected world, more and more companies must hedge the currency risks their cross-border transactions create. Yet despite its size, the foreign exchange market can seem impenetrable and confusing. The Economist Intelligence Unit offers an easy-to-digest primer on foreign exchange, which getAbstract recommends to students, investors and business professionals.

In this summary, you will learn

  • Why the foreign exchange market has grown and
  • What types of transactions firms can engage in to hedge their currency risks.


Stock markets often grab the headlines, but for real action, look no further than the foreign exchange (forex or FX) market, which sees 28 times more daily trading volume than all the world’s equity markets combined. In April 2013, currency transactions reached $5.3 trillion per day. Financial institutions...
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The Economist Intelligence Unit is an independent research and analysis organization.

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