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What is one major global regulatory framework after the 2008 crisis?
Basel III/IV standards for strengthening banking stability.
Why are emerging markets like Uzbekistan vulnerable to global capital volatility?
Because sudden stops or outflows can disrupt financing, raise borrowing costs, and increase currency instability.
What are Eurocurrency and Euromarkets?
They involve deposits and loans in currencies outside their home country (e.g., Euroyen in London) and grew due to lower regulation and cheaper costs.
What is the structure of the international financial market?
It is a decentralized global network where capital is raised, traded, and allocated through various segments such as banking, securities, and derivatives market
What drives capital to move from one country to another?
Capital moves due to interest rate differences, growth prospects, exchange-rate expectations, risk diversification, and government policies.
A managed floating exchange rate. (This is answer, you need to find question!)
What type of exchange rate regime does Uzbekistan use?
5% inflation. (This is an answer, you need to find question!)
What is the CBU’s medium-term inflation target?
What is a forward contract?
An agreement to exchange currencies at a set future date and rate.
Over $7.5 trillion per day. (This is an answer, you need to find question!)
How much is the daily trading volume of the FX market?
How does the forex market operate?
It operates as a decentralized OTC network, functioning 24/5 across global financial centers.
What is the main purpose of hedging in the FX market?
To protect against exchange rate fluctuations.
What is the spot market?
A market where currencies are exchanged immediately, typically settling in two business days.
What factors influence currency demand?
Inflation, GDP growth, interest rates, and geopolitical events.
What causes volatility in emerging market currencies?
Political risks, inflation, external debt, and central bank interventions.
What can cause a currency to depreciate?
High inflation, negative growth, political instability, or weak exports.
Currencies are always traded in...
Pairs
