Foreign Exchange :

The foreign exchange market works through  and it operates on several levels. Behind the scenes banks turn to a smaller number of financial firms known as “dealers,” who are actively involved in large quantities of foreign exchange trading. Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the “interbank market”, although a few insurance companies and other kinds of financial firms are involved. Trades between foreign exchange dealers can be very large, involving hundreds of millions of dollars. Because of the sovereignty issue when involving two currencies, forex has little (if any) supervisory entity regulating its actions.

The foreign exchange market assists international trade and investments by enabling currency conversion. For example, it permits a business in the to import goods from the member states, especially members, and pay, even though its income is  It also supports direct speculation and evaluation relative to the value of currencies, and the speculation based on the interest rate differential between two currencies

In a typical foreign exchange transaction, a party purchases some quantity of one currency by paying with some quantity of another currency. The modern foreign exchange market began forming during the 1970s after three decades of government restrictions on foreign exchange transactions (the of monetary management established the rules for commercial and financial relations among the world's major industrial states after ), when countries gradually switched to  from the previous , which remained  as per the Bretton Woods system.