Currency Valuation- International Financial Market

Currency valuation will be critical topic for investors to innovate in investment decisions. Deflation in emerging markets and USD rise and its impact on tied currency economies .Part of globalization Qatar is seeking to benefit in its domestic developments in binding global partnerships,and lessen currency risks on FDIs &capital. investors can choose option contracts to control currency exchange options and control revenues .

Forward contract can bring investors choice to specify rates and dates to make the transaction to control profits as projected, while foreign investors can choose future contact to settle for the contracts and MNC transactions on specific time in the future and floating rate, this option is utilize more for stable economic trends and decision are taken based on future predictions and statistical record to minimize inherited transaction risks of the MNC.

Global money market integration grown faster to provide investors to fund investments in denominated foreign currencies,&provide elasticity in interest rate financing,& broaden financing options for denominated ones.International money market will be influenced by supply&demand as interest rates correlated to the market when economy strengthen through expansion of MNCs and ,the increasing demand in liquidity to support their expansion activities,however, the weaker the economy the less liquidity access to finance MNC activity that is highly correlated to money market interest rate .

it is recommended to invest in debt securities to eliminate default risk on short term bases ,hence to be less exposed to interest rate volatility and reach planned returns.risks associated with bond market including: interest rate risk ,when bonds declined value in long term with interest rate and,exchange rate risks resulted from denomination of currency against home currency value.

Adding bond to the financial market will enhance stability from market shocks and foreign investment volatility impact due to short speculations and volatility of financial instruments such as interest rates and, inflation. its viable investment in emerging countries where it requires low interest rate to push growth,as it has inverse relationship with interest rate .evaluation of bond based on bond rating system to allow investors to measure default risks through investment span. it is experienced that short term bond maturity speculations is more viable&less affected by market rate volatility.

Moreover, bonds classified into various categories such as municipal, corporate bonds, strip bonds, treasury bills and other money market instruments to assist to meet investment&activity conditions.

Selection of bond investment will depend on lower market interest rate,and shorter time to maturity associated with higher coupon rates existence of transparent regulation of bond market will increase efficiency to regulate investment pricing model and, getting assurance on ratings from global organization such as S&P, DBRS, and Moody’to ensure compliance with financial standards&quality assurance measures.

There is special features for bond trading such as call provisions, conversion, extendable maturities. Each feature influences the bond’s price to achieve higher yields ,it is advised to diversify bond portfolio for best returns,and utilize international fund instrument&fixed income such s pensions fund to decide maturity time investment if it is short or long terms.risk assessment of the bonds starts from registration with one of equity insurance Org EX Moodys to supervise investment roles compliance, and minimize investment cost that could arise &transaction fees.

liquidity risk could arise in a non consistent bond trading markets.Investment in bond market will stabilize investments volatility from foreign investments &speculations resulted from diversification of bond span,selection of bond type depend mostly on credit rating criteria like Moodys to ensure compliance with global standards and insurance. it is advised to invest in less bond cost ,and, short to medium span period to maximize interest rate returns and refrain decline in value overtime.