Functions of Foreign Exchange:
The Bank actions as a media for the system of foreign exchange policy. For this reason, the employee who is related of the bank to foreign exchange, specially foreign business should have knowledge of these following functions :-
- Rate of exchange.
- How the rate of exchange works.
- Forward and spot rate.
- Methods of quoting exchange rate.
- Premium and discount.
- Risk of exchange rate.
- Causes of exchange rate.
- Exchange control.
- Exchange position.
- Intervention money.
- Foreign exchange transaction.
- Foreign exchange trading.
- Export and import letter of credit.
- Non-commercial letter of trade.
- Financing of foreign trade.
- Nature and function of foreign exchange market.
Basically these functions are followed by Banks.