Evolution and trends of the foreign market in Romania

Abstract

The foreign exchange market is a component of the financial market and can be defined as the set of financial-foreign exchange relations through which the operations of sale and purchase of foreign currencies (currencies) at international level are carried out. The foreign exchange market ensures the formation of the exchange rate expressed in the national currency. It allows individuals and legal entities access to international exchanges, to travel abroad, provides foreign currency holders with the necessary space to sell, and the exchange rate results from the confrontation with demand and supply. Foreign exchange markets have emerged as an effect of the use of national currencies in international trade regulations. They can also be called centers of currency trading. The article addresses a topical issue, with a major socio-economic impact and aims to analyze the evolution of the foreign market in Romania. The methodology was based on the analysis of some data series in the period 2008-2018, which led to concrete results, presented below. JEL: D53, E44.