Foreign Exchange Management

Foreign Exchange Management refers to the processes and regulations governing the exchange of one currency for another, which is essential for international trade and investment. It involves managing foreign currency transactions to minimize risks, ensure compliance with laws, and optimize exchange rates. This management is crucial for businesses operating in global markets, as it affects costs, revenues, and overall financial stability. Central banks often play a role in foreign exchange management by influencing currency values through monetary policy and interventions, ensuring balance in international economic relationships.