Central banks seek to stabilize their country’s currency by trading it on the open market and keeping a relative value compared to other world currencies. To do this, they enter into currency swaps, giving them the right to buy a set amount of a foreign currency for a set price in another currency in the future. doing this, they are limiting their exposure to large fluctuations in currency valuations. At each second of every day, countries’ economies are growing and shrinking because of economic and political instability and infinite other perpetual changes. Businesses seek to mitigate the risks of doing business in foreign markets
Domestic stock, bond and commodity exchanges are not as relevant, or in need, on the international stage and are not required to trade beyond the standard business day in the issuer’s home country. Due to the focus on the domestic market, demand for trade in these markets is not high enough to justify opening 24 hours a day, as few shares would be traded at 3am, for example.
