The central banks of the European Union

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So, a shark will have great power to acquire a lot of food , while a little fish barely has enough to survive that day. In this sense, there are times when the tide rises and big waves are generated from financial political decisions that do not depend on any of us. Now, the medium-sized fish are the private companies , investors and banks that have coverage needs and make transactions with the smaller fish. They all have access to the ocean and exchange currencies without the need for a third party to participate. Basically, this is how the forex market works. Now, who are the big fish?


The Bank of England, Japan and the Federal Reserve. Interest rates Belarus WhatsApp Number When interest rates rise , it is more expensive for a participant to borrow that currency from the central bank, causing a shortage in the supply of that currency in question and increasing its price momentarily. This is related to the development of a country , and since there is no capital, business relationships will not develop, there will be less money in the country and the growth rate will be much slower. However, it also paralyzes inflation and debt, so it has its positive side.





On the other hand, when interest rates fall , participants will ask for more and more capital, causing a surplus of supply and the price of the currency begins to fall. Which translates into expansion of the economy and more money for the country in question. So, What is Forex Trading? Since we have seen this, it is time to define what Forex trading is . Trading is the activity in which we exchange any financial instrument. This can be from a currency, stock, commodity and cryptocurrencies.