Are most trades on the foreign exchange market the result of transactions between importers and exporters of goods and services, or the result of international investors and speculators? Explain your answer

Trades in foreign exchange market are a result of the following:

1. imports and exports of goods and services, for which the foreign exchange transaction takes place almost simultaneously with the exchange of goods / services

2. investments and repatriation of profits and investments

3. private transfers by citizens of a country working in another country and sending money to their families back home (pls note that this is not import or export of services)

4. govt or multi-lateral transfers, e.g., aid by a rich nation to poor nation, etc.

5. speculation by foreign exchange traders

6. hedging activities by exporters adn importers, which they understake to protect themselves from foreign exchange risk