The international financial market is a global space where financial instruments are exchanged between actors from different countries, facilitating transnational investment and financing. This market includes the foreign exchange market, the debt market, the stock market, and the derivatives market.
The international financial market:
Facilitates capital exchange:
Connects those seeking to finance projects (companies, governments) with those wishing to invest (investors, banks, investment funds).
Allows for portfolio diversification:
Enables investors to diversify their assets internationally, seeking better returns and reducing risk.
Facilitates international trade:
Allows companies to conduct transactions in different currencies, facilitating global trade.
Involves various actors:
From large banks and investment funds to companies and individuals.
Is a complex market:
Requires regulation and supervision to ensure the stability and transparency of the system.