WTO Accession talks are expected the first quarter of this year between Iraq and WTO. Why?
Iraq is transitioning into a "Market Economy" which means their resources will be allocated and price determinations will be based upon new demands for their currencies exchanged on the market.
A market rate will be formed from these WTO meetings to determine a fair price in trade.
Explanation:
Market Rate Definition:
The "market rate" refers to the price at which a currency is currently trading on the open market, determined by supply and demand.
International Rate:
When you talk about an "international rate" for a currency, it simply means the rate at which you can exchange your domestic currency for another foreign currency on the global market.
Key Point:
While banks or exchange services might offer slightly different rates to customers (adding a margin for profit), these rates are still based on the underlying market rate.
Yes, to have an international rate for a currency, you must also have a market rate, as the international rate is essentially the current market value of that currency in relation to other currencies on the global foreign exchange market (forex).
© Goldilocks
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