Currency transactions are transactions, the subject of which are monetary values. They must be regulated by legislation or by certain international agreements.
Currency exchange operations withforeign currency signs, are conditionally divided into current ones and those that are connected with the movement of capital. The first category is becoming more important today. The currency transactions connected with the movement of capital are actions that are conducted on a limited scale. There are a number of reasons for this. Their implementation is associated with serious risks, and clearance is a complex process. Capital transactions are carried out on foreign trade transactions, concluded under loan agreements, related to the purchase or sale of banknotes of another state or checks, may occur when acquiring shares, stakes, and deposits from non-residents.
Operations with the currency are made by individuals, banks, financial institutions, enterprises, various companies and funds. They are divided into urgent and cash.
When crediting or debiting funds to an account ina number of cases may require a certificate of currency transactions. It is provided to the bank to monitor the client's finances. It specifies the TIN, account number and some other data.
Currency transactions are an object of both banking and state supervision and control. Consider their main types, which are used in the international market.
Spot is the immediate supply of money.It accounts for 9/10 of all transactions of this category. The exchange rate is strictly fixed for the time of delivery. The essence of this operation is the acquisition of foreign money through banks that are contractors, 3-4 days after the transaction was concluded.
"Swap" (exchange) - purchase and sale of two types of currencies,immediate delivery. This is combined with a simultaneous counter-transaction using the same types of banknotes. Thus, the bank sells the currency with the condition of immediate delivery and simultaneously buys it. This operation can be carried out not only with money, but also with interest, gold, loans, securities, etc. There is an international corporation of dealers specializing in "swap".
Urgent transactions are often concluded.Such currency transactions are a mutual agreement on the delivery of foreign money after a certain time after its conclusion. In this case, the course, which is guided, is indicated in advance. In fact, it is fixed at the time of the transaction.
Arbitrage currency transactions - is an attempt to buy bank notes cheaper,
to sell them more expensive.Thus, their meaning is in obtaining benefits. Acquisition of currency is combined with counter contraction. The factor that benefits is the difference in rates or their fluctuations. Such arbitration can be of two types. Simple is a job with only two currencies, and complicated with several at once. There is also a 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 from different banks. Another type of operation is actually speculative arbitration, which was mentioned above. It is expressed in work with exchange rates and receiving benefit from their change. Large speculators use a variety of techniques that allow them to quickly achieve their goals. For example, they can artificially create a panic so that people start buying or, on the contrary, acquire one or another currency.
