0
There are 2 primary needs for foreign exchange:
1) To allow individual and businesses to pay for a product or service in a different currency from that which they currently hold. For example, I currently hold European Union Monetary Units (EURO or EUR) and I need to purchase a case of coconuts from Malaysia and the bill is in Malaysian Ringgit (MYR). I need a method to convert the EUR into MYR to settle the bill. The monetary conversion must take place at some point regardless of whether I physically travel to Malaysia to pay in person or send the money through other means.
2) For hedging, a company may hold multiple currencies and have a need to hedge their exposure against the rise or fall of a particular currency. So they could use a retail broker and buy or sell a certain amount of the currency they are hedging against to protect against losses from exchange rates rising or falling between the time they hold the currency and the time that the currency has to be used for spending on products or materials.
What else can I help you with?
What do you mean by foreign exchange?
Foreign Exchange is Exchange between two currency.
Why do you need currency exchange?
Foreign Currency rates fluctuate based on the market forces of demand and supply. This means the rates can change at any given moment. We need a foreign exchange market to determine a value for each foreign currency and this would make it easier to exchange different currencies for one another.
What is foreign exchange operation?
The Eurosystem conducts foreign exchange operations according to Article 105 and consistent with the provisions of Article 111 of the Treaty establishing the European Community. Foreign exchange operations includeforeign exchange interventions;operations such as the sale of foreign currency interest income and so-called commercial transactions.
What is capital and foreign exchange?
In general capital is financial resources.. And Foreign exchange is called Forex.
Why banks offer foreign exchange services?
to provide foreign exchange service to the costumer or to get benefits from them
Which foreign exchange system has the highest foreign exchange rate?
The Zimbabwean has the highest foreign exchange rate.
What do you mean by foreign exchange?
Foreign Exchange is Exchange between two currency.
How is a foreign exchange market different from foreign exchange?
Foriegn Exchange invloves physical transaction of currencies from a dealer or broker. But Foreign Exchange Market involves a virtual transaction with real money. Foreign Exchange market is largest of all the markets and nearly 10 times bigger than NYSE. These simple sentences can't explain the difference. You need to drill more to know what it is.
What are foreign exchange rates?
Foreign exchange rates are currency exchange value of other countries.
Where is the foreign exchange in London?
The foreign exchange in London is located at a variety of places throughout the city. The London Foreign Exchange under the Bank of England, International Currency Exchange and Holborn Currency Exchange are all places a traveler can visit for their foreign exchange needs in London.
Why do you need currency exchange?
Foreign Currency rates fluctuate based on the market forces of demand and supply. This means the rates can change at any given moment. We need a foreign exchange market to determine a value for each foreign currency and this would make it easier to exchange different currencies for one another.
What is foreign exchange operation?
The Eurosystem conducts foreign exchange operations according to Article 105 and consistent with the provisions of Article 111 of the Treaty establishing the European Community. Foreign exchange operations includeforeign exchange interventions;operations such as the sale of foreign currency interest income and so-called commercial transactions.
What has the author I H Kilato written?
I. H. Kilato has written: 'Foreign exchange management' -- subject(s): Foreign exchange administration, Foreign exchange reserves
Can you still exchange foreign currency that is uncirculated?
we can exchange foreign currency of leats of banks
What is capital and foreign exchange?
In general capital is financial resources.. And Foreign exchange is called Forex.
When was ITunes Foreign Exchange created?
ITunes Foreign Exchange was created on 2007-07-10.
When was Schneider Foreign Exchange created?
Schneider Foreign Exchange was created on 2006-11-30.
