Foreign Exchange

Home » CMA Glossary Term » Financial Statements and Reporting » Foreign Exchange

Foreign Exchange refers to the process of converting one currency into another, often for the purpose of international trade or investment. It involves the determination of exchange rates, which fluctuate based on market dynamics. The definition of currency exchange is integral to understanding how businesses manage cross-border transactions and mitigate risks associated with currency fluctuations. This term is essential in global financial operations and reporting.

CMA Exam Academy 16-Week Accelerator Program