FXO (Foreign Exchange Office)

An FXO (Foreign Exchange Office) is a facility where international currency transactions occur, typically involving the exchange of different national currencies for trade, investment, or travel purposes. It acts as a point of contact for businesses, governments, or individuals needing to buy or sell foreign currencies at current or agreed-upon rates. FXOs provide services such as currency conversion, hedging, and foreign exchange risk management, helping clients manage exposure to currency fluctuations. They play a crucial role in the global economy by facilitating smooth cross-border financial transactions and ensuring liquidity in foreign exchange markets.