Economics · Foreign Exchange Market

Consider the following statements regarding the participants and instruments in the Foreign Exchange Market: Statement I: Commercial banks are the primary market makers in the forex market, acting as intermediaries for their clients and also trading on their own account to maintain their positions. They operate in the interbank market where the bulk of the global forex turnover occurs. Statement II: Central banks, such as the Reserve Bank of India, participate in the forex market to manage exchange rate volatility and ensure that the currency value aligns with national economic goals, rather than for profit. Statement III: Hedgers are market participants who enter the forex market to take on additional risk in the hope of making large profits from favorable currency movements, whereas speculators try to mitigate risk. Which of the following options correctly describes the validity of these statements?