The purchase and sale of international currencies takes place in a foreign exchange (FX) market. Banks and other financial institutions make up the largest percentage of participants, who trade on the FX market for a variety of reasons, including the following:
See Also
How to Trade Currency in India? Beginner's Guide | Share IndiaWhy Trade Forex? | Benefits of Forex Trading- Protecting themselves from loss because of changes in exchange rates
- Acquiring the foreign currency necessary to buy goods and services from other countries
See also Derivatives
Learn More
Foreign Exchange (Comptroller's Handbook – Section 813, March 1990)
Provides background and guidelines for examiners responsible for evaluating a bank's foreign exchange activities
References
Securities Denominated in Foreign Currencies (BC 216, September 1986)
Covers OCC policies concerning ownership of securities not denominated in U.S. dollars
