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Foreign currency transactions

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Added on  2023-03-31

Foreign currency transactions

   Added on 2023-03-31

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FOREIGN CURRENCY
TRANSACTIONS
Foreign currency transactions_1
INTRODUCTION
Foreign currency transaction can be
understood as a dealing in which
denomination of currency is not local and
based on the country where banking office is
present. Thus, in foreign exchange
transactions, two different nations are
involved (Kenen, 2011).
Foreign currency transactions_2
Importing goods from overseas
For instance, if AUD's value is stronger than any
other country from which it is exporting goods, then
it will be in beneficiary position as it will be cheaper
for Australian company. Say for example an
electronic item is imported by Australia from Japan.
So, exchange rate is 1AUD is equal to 82.93
Japanese yen. So, Australia holds a stronger value
because of which it can import goods in cheaper
value.
Foreign currency transactions_3

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