What is the ‘Foreign Exchange’ Or Forex ?

The foreign exchange is the exchange of one currency for another, or the conversion of one currency into another currency. Foreign exchange also refers to the global market where currencies are traded virtually around-the-clock. The term foreign exchange is usually abbreviated as “forex” and occasionally as “FX.”. A country’s currency value also may be fixed by the country’s government. However, most countries float their currencies freely against those of other countries, which keeps them in constant fluctuation.
The value of any particular currency is determined by market forces based on trade, investment, tourism, and geo-political risk. Every time a tourist visits a country, for example, he or she must pay for goods and services using the currency of the host country. Therefore, a tourist must exchange the currency of his or her home country for the local currency. Currency exchange of this kind is one of the demand factors for a particular currency. Another important factor of demand occurs when a foreign company seeks to do business with a company in a specific country. Usually, the foreign company will have to pay the local company in their local currency. At other times, it may be desirable for an investor from one country to invest in another, and that investment would have to be made in the local currency as well. All of these requirements produce a need for foreign exchange and are the reasons why foreign exchange markets are so large.
Foreign exchange is handled globally between banks and all transactions fall under the auspice of the Bank of International Settlements.
Foreign exchange markets – The forex market is the market in which participants are able to buy, sell, exchange and speculate on currencies. The forex markets is made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. The currency market is considered to be the largest financial market in the world, processing trillions of dollars worth of transactions each day.
Exchange rate – the price for which one currency is exchanged for another.
Foreign exchange reserves – holdings of other countries’ currencies.
International trade – the exchange of goods and services across national boundaries.
Foreign exchange company – a broker that offers currency exchange and international payments.

Intact Forex & Tourism Pvt. Ltd.

Intact Forex & Tourism Pvt. Ltd. deals in all major currencies through our branch network. We are a leading aggregator and exporter of physical currencies. Intact is a preferred buyer of foreign currencies. We are empanelled by private and public sector banks across India for purchase of currency notes and travellers cheques. We also have franchisees at hotels across India for currency pickup. We export foreign currency to the Middle East and United Kingdom, and import foreign currency to meet domestic requirements.
Intact sells American Express travellers cheques. The instrument is one of the safest modes to carry currency. We are one of the largest sellers of American Express travellers cheques in USD, GBP, EUR, AUD, CAD, JPY, and CNY.

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