The Foreign Exchange Market Exchange rates are determined in the foreign exchange market The market in which international currency trades take place The actors The major participants in the foreign exchange market are Commercial banks International corporations Nonbank financial institutions Central banks Copyright C 2003 Pearson Education, Inc Slide 13-10Copyright © 2003 Pearson Education, Inc. Slide 13-10 The Foreign Exchange Market ▪ Exchange rates are determined in the foreign exchange market. • The market in which international currency trades take place ▪ The Actors • The major participants in the foreign exchange market are: – Commercial banks – International corporations – Nonbank financial institutions – Central banks