Foreign exchange market Canada is experiencing rapid growth in the business of foreign currency trading. The market helps in maintaining a proper foreign currency reserve in the country. The Canadian dollar follows the trend of most of the industrialized nations and according to this trend the foreign exchange market Canada operates through the floating exchange rate system.
The market conditions are the base of the value of Canadian dollar. At the same time, the floating exchange rates create the base of the country’s monetary policy. The regulating authority of the foreign exchange market in Canada is the Bank of Canada. The bank has the authority to take reformatory measures if the value of the Canadian currency faces any turbulent situation for a short term.
These interventions are done through a certain policy prepared by the Federal government. According to the recent survey reports by the Canadian Foreign Exchange Committee, the foreign exchange market Canada is growing very rapidly and generating substantial amount of revenue for the country. The report says that the total business worth $US 55.5 billion has been provided by the market in April 2007 in the traditional foreign exchange products and the growth rate has been recorded as 12.8%.
At the same time, the monthly business growth rate for the same month has been recorded as 7.3%.
The foreign exchange market of Canada faced a downfall in 2006 but at present, the market is growing at a rate of nearly 43%. The average daily business in the traditional products marked a growth of nearly 5.5%. The survey further depicts that the total business in the traditional foreign exchange market in 2005 was of $US 970.2 billion. The amount touched $US 1110.1 billion in April 2007
The derivatives market is also doing an excellent job. In October 2006, the market provided business worth $US 44 billion. In April 2007, it generated revenue worth $US 60.9 billion.