In all the countries of the world till 1970’s, foreign exchange was considered as a rare
commodity and was subject to the strict market control. Exchange control was the order of the day.  

Today we all speak about exchange management and not about exchange control. Foreign exchange is essential to co-ordinate global business. 

Management of Foreign Exchange

Foreign exchange management is associated with currency transactions designed to meet and receive overseas payments. Foreign exchange management requires you to understand the relevant factors that influence currency values.  You may execute the proper strategy to manage risks and improve potential earnings.  

Foreign exchange management begins with trading currencies to exchange goods and services overseas. International business converts overseas profits back into their domestic currency to spend at home. Meanwhile, consumers exchange domestic currency for foreign banknotes to buy overseas goods.  

Foreign exchange risks describe lost profits and purchasing power related to adverse currency movements.  Even today exchange control exists on all countries with varying intensity.

Post a Comment