Treasury forex

It refers to the process of managing and

controlling the exchange of one currency for

another.

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Foreign Exchange Management

Foreign Exchange Management involves various activities related to

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✔ Buying

✔ Selling

✔ Exchanging of currencies in the global

marketplace.

is the mechanism by which the currency of one country gets converted into the currency of one another.

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Foreign exchange

These banks maintain stocks of one currencies in the form of _ with banks

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balances

Nature of foreign exchange

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Volatile, affected by hedger, arbitrager, speculator. Affected by demand and supply.

Affected by rate of interest.

Affected by balance of payment surplus and deficit.

Affected inflation rate.

Spot and forward rates are different.

Affected by the economic stability of the country.

Affected by the fiscal policy of the government.

Affected by the political condition of the country.

It can be quoted directly or indirectly

is a worldwide decentralized over-the- counter financial market for the trading

of currencies.

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foreign exchange market (FOREX)

it is a place where one currency is exchanged with another currency based on fluctuation rates.

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foreign exchange market (FOREX)

What is the function of Foreign exchange

Management?

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Facilitating International Trade

Managing Currency Risks

Maintaining Exchange Rate Stability

Regulatory Compliance

Managing Foreign Exchange Reserves

Promoting Capital Flows

Foreign exchange management enables businesses to engage in cross-border trade by providing mechanisms for converting one currency into another

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Facilitating International Trade

This function involves facilitating payments for imports and exports, managing currency exchange rates, and ensuring smooth settlement of transactions.

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Facilitating International Trade: