BBA, Sem-2, Fundamentals of Foreign Exchange Management, Unit-1, Introduction to Foreign Exchange Management, 19.05.2021

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2 FOREIGN EXCHANGE MANAGEMENT www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

3 CONTENT • Introduction • Meaning • Scope • Significance of foreign exchange management www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

INTRODUCTION 4 Foreign exchange management is associated with currency transactions designed to meet and receive overseas payments. Foreign exchange management begins with trading currencies to exchange goods and services overseas. Foreign exchange occurs at rates that are associated with currency valuations. Foreign exchange rates describe the amount of one currency that must be given up to receive one unit of another currency, and they tend to parallel the political and economic environment of a particular country. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

MEANING 5 • Foreign Exchange (forex or FX) is a global market for exchanging national currencies with one another. • Foreign exchange venues comprise the largest securities market in the world by nominal value, with trillions of dollars changing hands each day. • Foreign exchange trading utilizes currency pairs, priced in terms of one versus the other. • Forwards and futures are another way to participate in the forex market. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

SCOPE 6 All right are reserved with CU-IDOL • People working in Forex Companies • Banks • Importers • Exporters • Travelers www.cuidol.in Unit-1(MAP-607)

SIGNIFICANCE 7 www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

8 THANK YOU www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL