Forex interest rates. Currency arbitrage. The impossible is possible.
After the U.S. abandoned the gold standard in 1973, when all the currencies were pegged to the dollar and thereby had a fixed value in terms of gold, the foreign exchange rates began to be determined based on market conditions according to the law of supply and demand, and also according to other principal laws, among which three basic ones can be distinguished:
The interest rate parity law
The commodity price law
The inflation expectations law
Each of these laws affects a foreign exchange rate simultaneously, but unevenly, and depends on…
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