Foreign Exchange

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Foreign exchange and its value to the South
African economy Currencies
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Foregin exchange

• https//www.youtube.com/watch?v4caLzG_Br5E

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Local currency
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Foreign Currency
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Foreign exchange (Forex, FX)

• When people exchange their money their money for
  another currency its called foreign exchange
• International tourists have to use their local
  currency to buy enough of the currency of the
  destination country so that they will have the
  money they need when they travel in that country

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Exchange rate
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Exchange rate

• Not all currencies have the same value. The
  exchange rate is the price of one currency
  expressed in units . There are two different
  units
• On the basis of local currency per unit of
  foreign currency
• On the basis of foreign currency per unit.

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Informal fluctuations

• These are changes in the value of one currency in
  relation to another on a daily basis.
• The exchange rate of any country can exchange
  within every minute.
• Take a look at look at the graph on page 127 it
  shows the value of the rand against the American
  dollar fluctuated from 15 April to 12 August 2011

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Informal Fluctuations

• Fluctuations happen when the demand for
  particular currency is high because of investors
  want to invest in that countrys stock market or
  buy exports . The price of that countrys
  currency will increase. The opposite happens when
  a country suffers from an economic or when
  investors lose confidence in the country's markets

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Informal fluctuations
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