If every single country the entire world total had exactly the same currency, say the United States Dollar or the British Pound, whenever you traveled, you’d never need to switch your currency. You wouldn’t need to concern yourself with a trade at all because if every country used universal money, it wouldn’t matter.
But the world’s currency differs among countries, which provides basis 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 can be found in handy when you’re dealing in almost any exchange of 1 country’s money for another’s? The Forex is used to trade one currency for another.
Without it, if you turned all your United States Dollars into say, Japanese Yen, but came back again to the United States with the same of $1,000 tied up in yen, the yen will be worthless for your requirements here. You couldn’t exchange that yen at any junk food restaurant. You couldn’t look for clothes with it, you couldn’t rent a motel room.
Without currency exchange facilitated through the Forex, you might end up hungry and naked and with no place to sleep. Okay, that’s a drastic example, but money really is the oil that makes the entire world go around.The Forex is the machine that the oil is funneled through.
One cannot work minus the other. If there was no Forex, travel out of and to the United States could perfectly ground to a halt. Would you imagine some sort of without the ability to exchange money? With no Forex, that imagined world would become very real indeed. Exchange with the Forex isn’t limited by just small time investors, traders who operate out of their house and it’s not just limited by well heeled investors who make millions. The Forex is for anyone with a need certainly to exchange currency.
The Forex can also be used by multi-million dollar corporations. If a company here in the United States does business beyond your US and pays a foreign company for an item or service, there must be a way for that currency to switch from United States Dollars to whatever currency is used in the foreign country. So long as there is money that really needs a trade from country to another to be able to be used, there will be a need for the Forex.