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It is true that dealers in foreign exchange departments at large international banks act as market makers and maintain inventories of the securities in which they specialize.

What is mean by foreign exchange department?

  • Operations and transactions involving foreign exchange are carried out by a bank's foreign exchange department.
  • A forex department's primary duties include managing foreign remittances coming in and going out, as well as purchasing and selling foreign currency.
  • By permitting currency conversion, the foreign exchange market supports investments and trade on a global scale.
  • For instance, it allows a company in the United States to import goods from countries that are part of the European Union, particularly those that are in the Eurozone, and pay in Euros even though the company receives its income in US dollars.
  • There are several foreign exchange markets with unique features, including the spot market, swap market, forward market, options market, and futures market.

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