Financial transactions between one or more countries usually occur in the foreign exchange market. FX and FOREX are
two of the terms used interchangeably within this market. The Forex markets are defined as the buying and selling of
currencies between countries that have different monetary units. Most of these transactions transpire between banks
and other financial institutions, both public and private, in the countries involved, and as long as currency
exchange is needed then the FOREX market will continue to exist.
An example of these transactions would be when a person travels to another country and has to exchange his dollars
or euro for the local monetary unit to enable him to buy something in the domestic market. In this case, he would
usually have his money changed in a bank, where such transactions are provided, or in an accredited agency which
handles the same thing. It is to be noted that not all banks and financial institutions have foreign exchange
services.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment