Foreign exchange market is a market where you can buy or sell currencies according to your demand. It’s a market like other market. Market transaction occurs according to demand and supply. In finance exchange rate between two currencies determines the value of one currencies against the other. For example you live in Bangladesh and you need dollar. So in foreign exchange market you can get dollar by selling your t aka according to a given day exchange rate. Foreign exchange market is a large market and about 3 trillion dollar market. The market is open 24 hours except weekend.

Exchange rate plays an important role in export and import. Transaction beyond the home country always occurs in foreign currencies. Suppose you are a chinese national export goods or services in U.S.A . Your payment will be taken place in Dollar.

Exchange rate is not constant. Its volatile. Supply and demand is the key factor. There are different sorts of exchange rate system. Which are very important in different situation.

Characteristics of foreign exchange market:
Foreign exchange market ruled by some characteristics. Unlike stock market foreign exchange market does not charge any transaction cost, no commission charge or any unusual price hike or short selling. Some unique characteristics are given below:

• Transaction occurs round the clock. A twenty four hour market. Only weekly holiday no transaction made.
• No commission charged for buying or selling.
• Usually six types of major currencies attract traders.
• Traders have the right to make transaction freely. Short selling is not restricted. Usually the market totally depends on demand and supply.
• Foreign exchange market is riskier than the stock market. The market is not suitable for inexperienced investor.

Different types of Exchange rate :

Fixed or pegged exchange rate : In fixed exchange rate market exchange rate fixed by the central bank or by the government.  Government can take advantages by selling or buying its own currencies when the exchange rate rise or fall beyond the expected level.

Floating Exchange Rate: In floating exchange rate currencies are free to float according to market demand and supply. Developing country may be benefited by the floating exchange rate system. Some times central bank or government of the respective country put a ceiling on upper and lower rate of exchange rate. In exchange rate when government intervene the market to gain some advantages over its own currencies is known as managed float or dirty float exchange rate system.

In recent times dollarigation gain popularity in many countries.  Dollarization refers to use foreign currencies instead of home countries currencies or simultaneously use two currencies. Many countries adopted the method . The main advantages of dollarization is curbing inflation gaining financial stability. In recent times Ecuador, el Salvador followed the method.

Stepping into a new business or dealing the existing business in both cases it is always very important to manage your finance or your limited resources in the most optimum way, which will add value in your organization Create wealth for the business, Generate profit and ensure expected return bearing in mind the risks that the business is taking and the resources invested. Allocate your resources in a planned way. Financial management software can help you a lot to manage your organization well. In addition it will also save you time and money.

In existing business a manager or a business executive has to deal with several key issues  Like customer relationship management ( CRM), , enterprise asset management( EAM), enterprise resource planning(ERP), financial management, human capital management, performance management, product life cycle management, supplier relationship management, and supply chain management, including business specific inventory management, vehicle management and store management.

So when you have to deal with such type of issues then it must be time consuming,complicated and may be expensive. But your task will be much easier and less expensive through using financial management software.

Using financial management software a business enterprise or company can enjoy the improve level of productivity and satisfied their customer or clients through better service. It will help to create better relationship with customers. Remember a satisfied customer always add value to your enterprise and also expand your market share.

Market is highly competitive. Business enterprise always faces fierce price war. So minimize the cost and increased efficiencies in all areas are very important. Using the minimum resources and get the maximum output will lead you to your expected profit or return and enjoying comparative advantages over the other companies. So manage your resources efficiently and get the larger benefit by using software in enterprise resource management or ERP.

Producing products with minimum cost and a foresighted marketing plan is not everything. Remember any problem in supply chain management can make a huge bad impact in your business. Maintain a proper and efficient supply chain channel is the key factor.Integrated network design and transportation management software that help clients improve their supply chain planning and execution process.

You have a large work force with brilliant result or skill. Integrate your workforce, improve productivity, reduce costs and turn human capital as an asset and enjoy competitive advantage. Is the process easy? The answer is how efficiently it is used and developed.  Properly evaluate the performance of the workforce or particular business unit is very significant.  Performance management software can help you make better decisions, manage the work force and help you to perform well. Performance management software helps the company to improve the business performance through the analysis of business processes and the provision of forecasting tools and performance analysis.