Currency transactions are transactions whose subject matter is monetary values. They must be regulated by law or certain international agreements.
Foreign exchange operations carried out with foreign banknotes are conventionally divided into current and those related to the movement of capital. The first category is becoming increasingly important today. Currency operations related to the movement of capital are actions that are carried out on a limited scale. There are a number of reasons for this. Their implementation is associated with serious risks, and design is a complex process. Capital movement operations are carried out on
foreign trade transactions, are concluded under loan agreements, are associated with the purchase or sale of banknotes of another state or checks, and can occur when units, shares, and deposits are purchased from non-residents.
Currency operations are carried out by individuals, banks, financial institutions, enterprises, various companies and funds. They are divided into urgent and cash.
When crediting or debiting funds to the account, in some cases a certificate of foreign exchange transactions may be required. It is provided to the bank to monitor the finances of the client. It indicates the TIN, account number and some other data.
Currency operations are an object of both banking and state supervision and control. Consider their main types that are used on the international market.
"Spot" - an immediate supply of money supply. It accounts for 9/10 of all operations performed in this category. The exchange rate is strictly fixed at the time of delivery. The essence of this operation is the acquisition of foreign money through banks that are counterparties, 3-4 days after the transaction was concluded.
"Swap" (exchange) - the purchase and sale of two types of currencies, their immediate delivery. This is combined with simultaneous counter-transactions using the same types of banknotes. Thus, the bank sells the currency subject to immediate delivery and at the same time buys it. This operation can be carried out not only with money, but also with interest, gold, loans, securities, etc. There is an international dealer corporation specializing in “swap”.
Often concluded derivatives transactions. Such foreign exchange transactions are a mutual agreement on the supply of foreign money at a certain time after its conclusion. In this case, the course to which they are oriented is indicated in advance. In fact, it is fixed at the time of the transaction.
Arbitrage currency transactions - an attempt to buy banknotes cheaper,
to sell them more expensive. Therefore, their meaning is to profit. The acquisition of currency is combined with a counter transaction. A profitable factor is the difference in rates or their fluctuations. Such arbitration may be of two types. Simple - it works with only two currencies, and complex - with several at once. There is also the so-called conversion arbitrage. This is an attempt to acquire the necessary currency on the most favorable terms. In this case, you need to work with competitive quotes of different banks. Another type of operation is speculative arbitration itself, which was mentioned above. It is expressed in working with exchange rates and obtaining benefits from their change. Large speculators use a variety of techniques to enable them to quickly achieve their goals. For example, they can artificially create a panic so that the population begins to buy up or, conversely, acquire a particular currency.