Explained: Interconnectedness of Credit Market
The Credit market is also known as the ‘Debt Market’ because the credit market includes various forms of debt. The Credit market is also referred to as the ‘bond market’, as the bond market also characterizes the dominant portion of the credit market. The credit market can be mainly classified into two categories – the…
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Forex market and Interconnectedness of Global Volatility explained
The Foreign Exchange Market in short also called the forex market is a global marketplace for exchanging national currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling, and exchanging currencies at current or determined prices. Foreign exchange trading uses currency pairs, priced in terms of one versus…
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RBI publishes working Group recommendation on State Government Guarantees
The Reserve Bank of India on Tuesday placed on its website the Report of the Working Group on State Government Guarantees. A guarantee, in law, is a contract to answer for the payment of some debt, or the performance of some duty, in the event of the failure of another primarily liable person. A government…
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Interconnectedness of money market
One of the important components of the international financial markets is the money market. Money Market is concerned with the issue and trading of securities with short-term maturities or quasi-money instruments. The Instruments traded in the money market are Treasury Bills, Certificates of Deposits (CDs), Commercial Paper (CPs), Bills of Exchange, and other such instruments…
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Interconnectedness of capital Market
A capital market is the part of a financial system concerned with raising capital by dealing in shares, bonds, and other long-term investments. Stock market (Share Market) is a place where buyers and sellers indulge in trade (buying/selling) of financial securities like bonds, stocks, etc. The trading is undertaken by participants such as individuals and…
RBI revises Master Direction on FX Risk Management and Interbank Dealings
RBI on Friday (January 5, 2024) issued revised Master circular in respect of Foreign Exchange Derivative Contracts, Overseas Commodity & Freight Hedging, Rupee Accounts of Non-Resident Banks and Inter-Bank Foreign Exchange Dealings etc. These directions lay down the modalities as to how the foreign exchange business has to be conducted by the Authorised Persons with…
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