Learn how floating exchange rates work, driven by forex market supply and demand, and compare with fixed rates to grasp their impact on global economies.

If you have ever traveled overseas or noticed that some magazines list a price in both U.S. and Canadian dollars, you are likely familiar with the concept of exchange rates. Forex markets allow ...

Explore the theory of uncovered interest rate parity (UIP), understand its formula, and discover how it links interest rates to currency exchange rate expectations.

Interest rate swaps are used by institutions and businesses to manage cash flows and interest rate exposure. Swaps involve the exchange of cash flows between two parties, with an intermediary handling ...

The foreign exchange market plays a crucial role in global trade. Institutions such as banks can buy and sell currencies like the euro or the yuan. As a result, international trading and investments ...