Foreign exchange (Forex) is in simple terms a process of exchanging one currency to another currency for various reasons. While some people will hold forex in order to trade for profit, others may hold such currencies so that they are able to fund investments across different countries (multinationals), financing trips to other countries, transacting while in foreign jurisdiction and handling other payments. In Forex market, currencies are traded in pairs where two currencies are involved.
Forex trading can be traced far back to the origination of currencies in the World. The forex market is perceived to be the largest, most liquid in the world. According to recent report from the Bank of International Settlements, forex trading volumes average at USD 5.1 trillion per day.
© 2021 KPMG in Tanzania, a registered partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.