The Bank of England has bought a number (molillion-billion, etc.) of pounds from the Swiss bank for francs. How will the exchange rate change, why?
The task. The Bank of England has bought a number (molillion-billion, etc.) of pounds from the Swiss bank for francs. How will the exchange rate change, why?
Can you give some links or examples (gold and dollars, etc.)?
I think it would be the usual barter.
Why does the bank of England need to buy back its own currency? it can be printed, figuratively speaking.
If one currency is bought and the other is sold, the first goes up, the second goes down.
You can look at the same process from the other side, i.e. the same party is both a seller and a buyer?
why does the bank of England need to buy back its own currency? it can be printed, figuratively speaking.
not necessarily pounds, it's not rigid.
India bought 200 tonnes of gold
how to analyse it? The same fact can be stated in other words:
The IMF sold gold. The gold ended up going up
In forex, this is how transactions are made - one currency is bought for another (it is sold).
If you see the news, you do nothing, but if we work inside this bank and we know that not more than a hundred people have this information and you already have a plan to flee the country, then you need to buy GBPCHF pair.
Why not buy CHFGBP? Because on the other hand Switzerland is buying back francs and selling pounds.
Let's not take into account the peculiarities of the economies of the two countries
What does this situation have to do with the market? After all, B.A. did not bring his volume amount to the market, but directly exchanged it with B.S. Consequently, further price changes will only depend on these two banks...
What does this situation have to do with the market? After all, B.A. did not bring his volume to the market, but directly exchanged it with B.S. Consequently, further price changes will only depend on these two banks...
not necessarily directly.
You can take a broader view of the situation:
B.A. buys pounds from the rest of the world (Australia, America, EU etc.) and at the same time
each country identically buys its own currency for pounds (or more broadly: for AUD,EUR,JPY, etc.)
It's impossible to tell which currency is up and which is down!? just temporary fluctuations.
where does it come from to say that one currency is buying and the other is selling?!
i.e. when we find out about it, the information will no longer be relevant.
The task. The Bank of England has bought a number (molillion-billion, etc.) of pounds from the Swiss bank for francs. How will the exchange rate change, why?
Can you give some links or examples (gold and dollars, etc.)?
I think it would be the usual barter.
What do you mean "Bought back" the francs? Switzerland over there also 'Bought back' the francs. They are both simultaneously buyers as well as sellers.
What do you mean, "Bought back" pounds? Switzerland over there also 'Bought back' the francs. They are both simultaneously buyers as well as sellers.
I gave the example of India.
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The task. The Bank of England bought a number of (molillion-billion, etc.) pounds from the Swiss bank for francs. How will the exchange rate change, why?
Can you give some links or examples (gold and dollars, etc.)?
I think it would be the usual barter.