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its very simple .. the method of converting the foreign currency in local curreny is called foreign currency conversion.
for example your local currency is USD and u have a foreign currency GBP
n u want to convert the GBP in USD.then u will convert the FCY in ur LCY . it took some bank charges in this conversion.. called conversion charges
What else can I help you with?
What factors create a foreign exchange gain on a foreign currency transaction?
An appreciation in a foreign currency creates a foreign exchange gain when the foreign currency is to be received. A decrease in the value of foreign currency creates a foreign exchange gain when the foreign currency is to be paid. (Hoyle, Schaefer, Doupnik, 2009, pp. 328)
How works nostro ACCOUNT?
A nostro account is a bank account held by a financial institution in a foreign currency at another bank. It facilitates international transactions, allowing banks to manage their foreign currency reserves and settle payments efficiently. When a bank needs to conduct a transaction in another currency, it can use the funds in its nostro account to execute the transaction, thereby minimizing the need for currency conversion and reducing associated costs. This account plays a crucial role in the foreign exchange market and enhances liquidity for cross-border operations.
What is FCR account?
Foreign Currency account
When does an unrealized foreign exchange gain or loss become a realized gain with respect to the foreign currency bank accounts?
When the cash in the bank account is sold at a currency other than its denomination.
Definition of Resident Foreign Currency Accounts?
Resident Foreign Currency Accounts (RFCAs) are bank accounts held by residents in a country that allow them to conduct transactions in foreign currencies. These accounts enable individuals and businesses to manage and convert foreign currency without the need to exchange it into the local currency first. RFCAs are often used for international trade, investments, or travel purposes, providing a convenient way to hold and transact in multiple currencies. Regulations governing these accounts vary by country, particularly regarding their use and the types of foreign currencies that can be held.
What is the difference between a foreign transaction fee and a currency conversion fee?
A foreign transaction fee is charged by your credit card company for purchases made in a foreign currency, while a currency conversion fee is charged for converting one currency to another.
Compare prices of us currency with foreign currency?
go to xe.com, its a currency conversion site.
What does foreign currency means?
Foreign currency is basically currency or denomination of another country. The term is mostly used in context with foreign exchange also known as forex. There are a number foreign echange specialists like Travelex India etc that do currency conversion.
What does it mean for an Oanda FX?
An Oanda FX is a foreign currency converter or conversion. It provides information regarding foreign exchange currency including conversions, transfers and exchange.
What service do a foreign currency broker provide?
A foreign currency broker helps with investment and international trade by authorizing currency conversion. In April of 2010 the daily average turnover for the global foreign exchange was estimated at almost $4 trillion.
What is mean forex?
FOREX is short for Foreign Exchange. It is the conversion of one country's currency for another.
What is Pakistan's current Foreign remittances rate?
The conversion rate varies depending on the currency of choice.
How is the conversion between foreign currency regulated?
Governments and banks determine the convertibility of currency. Depending on the country, currency may be fully or partially convertible. In several countries, currency is nonconvertible.
Who would use foreign exchange trading?
Foreign exchange trading is done on the foreign exchange market and allows for conversion of currency. Participants include banks, corporations, and speculators.
Does Bank of America buy foreign currency?
Yes, If you want to get taken. There is a hidden 8% surcharge in there conversion tables that they don't tell you about. Quite steep. Go to their foreign currency page and compare to a google search for the same.
What sort of services does forex trading offer?
Forex trading relates to trading foreign currency for profit. It provides currency conversion to aid international trade and investment.
Can you deposit a cheque in a foreign branch of your own bank?
Yes, but you will probably be charged for it and have problems with currency conversion (the banks always sting you).
