Based on their roles, the descriptions of participants in the forex market are:
- Foreign exchange broker - This agency conducts commercial forex transactions. These are handled by large commercial banks.
- Retail Customer - This includes foreign trade in goods and services using commercial banks for forex exchanges.
- Central Bank - The currency rate of exchange of the nation was fluctuating too much. An agency protected the value of the national currency by overseeing forex transactions.
- Foreign exchange dealer - This is a wholesale dealer of foreign currencies who supplies currencies when other agencies are short of them.
What are the roles of forex market participants?
Foreign exchange brokers facilitate forex transactions which is why commercial banks usually have this role. Retail customers are the end users who need forex to trade foreign goods and services.
The Central Bank ensures that the national currency is protected by tracking forex transactions while foreign exchange dealers hold foreign currencies and supply them to others who need them.
Find out more on the forex market at https://brainly.com/question/24517642.
