The foreign exchange market is the largest and most liquid financial market in the world, facilitating the exchange of one currency for another. It plays a vital role in international trade, investment, tourism, remittances, and capital flows. From the perspective of Bank Financial Management, the foreign exchange market enables banks to meet the currency requirements of customers, manage foreign exchange risks, earn trading profits, and maintain liquidity in different currencies. The market operates continuously across major financial centers worldwide and involves a wide range of participants with varying objectives. Some participants engage in foreign exchange transactions for commercial purposes, while others participate for investment, speculation, hedging, or regulatory reasons. Commercial banks are the most significant participants in the foreign exchange market. They act as intermediaries between buyers and sellers of foreign currencies. Banks provide foreign exchange services to exporters, importers, multinational corporations, tourists, students, and investors. They maintain accounts in different currencies, execute foreign exchange transactions, issue letters of credit, facilitate international remittances, and provide hedging products to customers. Banks also trade currencies on their own account to earn profits through exchange rate movements and arbitrage opportunities. Large international banks serve as market makers by continuously quoting buying and selling rates for different currencies. Central banks are another important class of participants. Every country’s central bank plays a crucial role in maintaining stability in the foreign exchange market. The Reserve Bank of India, the Federal Reserve, the European Central Bank, and the Bank of England are examples of central banks that monitor and regulate foreign exchange operations. Central banks intervene in the market to stabilize exchange rates, manage foreign exchange reserves, control inflation, and implement monetary policy. They buy or sell foreign currencies whenever excessive volatility threatens economic stability. Central banks also establish regulations governing foreign exchange transactions and supervise authorized dealers. Corporations and multinational companies are major users of the foreign exchange market. Businesses engaged in international trade require foreign currencies to pay for imports and receive payments for exports. Multinational corporations invest in different countries, establish foreign subsidiaries, borrow internationally, and repatriate profits. These activities expose them to exchange rate risk. Therefore, corporations actively participate in foreign exchange markets to convert currencies and hedge against unfavorable exchange rate fluctuations using various derivative instruments. Importers constitute another significant participant group. They require foreign currencies to pay overseas suppliers for imported goods and services. Exchange rate fluctuations directly affect their import costs and profitability. Importers often enter into forward contracts or other hedging arrangements to lock in exchange rates and reduce uncertainty. Banks facilitate these transactions by providing suitable foreign exchange products. Exporters participate in the foreign exchange market to convert export earnings received in foreign currencies into domestic currency. Since exchange rate changes influence