Trading of Currency and its Positive Role in Global Economy

Running Head: HISTORY OF MONEY
HISTORY OF MONEY
Name of the Student
Name of the University
Author Note

1HISTORY OF MONEY
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Economic Factors Affecting Forex Market............................................................................2
Level of Trade between the Nations......................................................................................3
Positive Role in Global Economy..........................................................................................3
Conclusion..................................................................................................................................4
Reference....................................................................................................................................6

2HISTORY OF MONEY
Introduction
International trades are impacted directly by the exchange rates. Boosting of the
exports can have the salutary effect on the GDP of the country. The currencies that are
exceptionally strong can be dragged on the economy that can result in the higher interest rates
as well as it shifts in the monetary policy for decreasing the currency value for spur the
growth. Apart from inflation as well as interest rates, the most important factor for the
relative level of country’s economic health. The currency exchange rate helps in playing
important role in the trade level of the country that is critical for most of the free market
economy of the world. Hence, the aim of this assignment is to do the analysis on the how
trading of currency plays positive role in the global economy. Under this assignment,
discussion will be done on the economic factors that affect forex market, levels of trade
between the nations and positive role played by the currency trading in the global economy
(Bussière, Delle Chiaie & Peltonen, 2014).
Discussion
Economic Factors Affecting Forex Market
Forex is considered as the true global marketplace, which is having the buyers and
sellers from every corners of globe that participates every day in trillions of dollars. It is
because of the much greater role played by the macroeconomic events, trading of the foreign
exchange has become globalized activity. The forex markets are driven primarily by the
macroeconomic factors (Lai & Yu, 2015). Trader’s decisions are affected by these factors
and it ultimately determines currency value at any point of time. One of the key factor in the
value of the nation’s currency is the economic health of the national economy. The overall
health of the economy are shaped by the number of events as well as number of the events