If each country the whole world over all had the same currency, say the United States Dollar or the British Pound, when you traveled, you’d never need to switch your currency. You wouldn’t need to bother about an exchange at all because if every country used universal money, it wouldn’t matter.
However the world’s currency differs among countries, which provides reason for the Foreign Exchange (or the Forex as it’s more commonly referred to). The Forex is where all the currency trading is handled. 꽁머니 How does the Forex come in handy when you’re dealing in any type of exchange of one country’s money for another’s? The Forex is used to trade one currency for another.
Without it, if you turned your entire United States Dollars into say, Japanese Yen, but came back to the United States with very same of $1,000 tangled up in yen, the yen would be worthless for you here. You couldn’t exchange that yen at any junk food restaurant. You couldn’t search for clothes with it, you couldn’t rent a hotel room.
Without currency exchange facilitated through the Forex, you can find yourself hungry and naked and without a place to sleep. Okay, that’s a drastic example, but money really could be the oil that produces the whole world go around.The Forex is the machine that the oil is funneled through.
One cannot work without the other. If there was no Forex, travel out of and to the United States could perfectly ground to a halt. Can you imagine some sort of without the capability to exchange money? Minus the Forex, that imagined world would become very real indeed. Exchange with the Forex isn’t restricted to just small time investors, traders who operate out of their home and it’s not merely restricted to well heeled investors who make millions. The Forex is for a person with a need to exchange currency.
The Forex can be utilized by multi-million dollar corporations. In case a company here in the United States does business away from US and pays a foreign company for something or service, there should be a way for that currency to switch from United States Dollars to whatever currency is utilized in the foreign country. As long as there is money that requires an exchange from one country to some other to be able to be utilized, there can be a need for the Forex.