- Economic Growth
- Expectation of Exchange Rate
- International Diversification
Motives for Providing Credit to International Market:
- High Interest Rate
- Exchange Rate
- Diversification
History of Exchange Markets:
Exchange Rate Definition:
The value of one currency with the respect of other currency of country.
- Gold Standard:
(1876-1913) before world war
The currency should be converted into gold.
2. Fixed Exchange Rate:
(1971-1973) according to smith son agreement the currency was made to exchange.
3. Floating Exchange:
After to (1973) the currency have been exchange according to law of demand and supply.
