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Importance of Foreign Exchange

>> Sunday, September 27, 2009

The importance of foreign exchange is described in brief as under:-

1- Foreign exchange reserves shows the financial strength and the stage of development of the economy.

2- The acceptance of currency at a predetermined rate makes the international trade easy.

3- The foreign exchange ratio shows direct relationship between the prices of the commodities in the national and international market.

4- The foreign exchange balances of a country directly affect the rates of exchange. A hard currency nation has stability in foreign exchange rate.

5- The rising foreign exchange balances of a nation increases its credit worthless in the international capital market.

1 comments:

International foreign exchange October 16, 2010 at 12:53 AM  

It's a nice informative blog for online international foreign exchange services. It is helpful for money transfer and currency exchange.

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