Terminological approaches to definition of Forex

The article is devoted to the modern approaches to definition of Forex. The author carries out the criticalreview of the basic definitions of the currency market both in the domestic monographies and scientific works, and foreign references.The problem of absence of a uniform definition Forex is revealed. The purpose of the paper is the development of a unified approachto the definition of the currency market. The advantage of many foreign works is the equivalence of concepts Forex and currencymarket. According to the opinion of the majority of the authors, Forex (FOReign EXchange Market) is defined as the largest financialmarket in the world, where the simultaneous purchase of one currency and sale of another is carried out. The same approach exists indomestic scientific works. For example, professor L.N. Krasavina defines currency markets as official centres, where the sale and purchaseof foreign currencies by the national one at the rate, developed on the basis of supply and demand. In our opinion, the given definitionreflects the essence of Forex most precisely. The advantages of this definition are the identity of the concepts Forex and currencymarket, attention to the official place of fulfilment of bargains, and the principle of formation of the rate of bargains in the currencymarket. The problem of the definition is the absence of mentioning of the participants of Forex. In the author's opinion, it is necessary tostate them in the definition, for in some domestic works the circle of the participants of currency markets is groundlessly limited only tobanks. Another extreme of some domestic works is an excessively broad understanding of the currency market. In one case, besidesconversion operations, the currency market is attributed with credit operations in foreign currencies, which, in our opinion, are morelogical for the sphere of the money market. In another case, Forex tools are described not only in terms of foreign currencies, but alsosecurities in foreign currency, which again sooner belongs to the sphere of the market of securities with all its specific features. In severaldomestic works the narrow treatment of the currency market including only its world or international segment is used. In opinion ofthe author, there is a necessity of allocation of the world, regional and local segments of the market. Taking into account the stated, weoffer the following definition: currency market (Forex) is a market of sale and purchase of currencies at official centres at the rate generatedon the basis of supply and demand between its participants. The given definition characterizes the specific features of this kind ofthe market most precisely.

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