What is forex exchange?

Answer 1

A Foreign exchange, or Forex, is the conversion of one country's currency into that of another. In a free economy, a country's currency is valued according to factors of supply and demand. In other words, a currency's value can be pegged to Another Country's currency, such as the U.S. dollar, or even to a basket of currencies. A country's currency value also may be fixed by the country's government. '

Foreign exchange is handled globally between banks and all transactions fall under the auspice of the Bank of International Settlements.