Foreign Exchange

Definition

Foreign Exchange. (FX/Forex) It is the exchange, or conversion, of one currency into another currency. Foreign exchange also refers to the global trading markets by which currencies are virtually exchanged around the clock, with the largest centers being based in London, New  York, Tokyo, and Singapore. The term foreign exchange is frequently abbreviated to forex as well as FX.

In the context of the Financial Competence Framework, Foreign Exchange is a topic in the Money And Transactions subject matter domain.

Competences

Mastering the role of Foreign Exchange in financial literacy context requires the following competences:

Code	Competency Description	Competency Type
12	Knows how to apply exchange rates to convert currencies	Knowledge
13	Knows that transaction fees, commission and exchange rates vary across time and providers	Knowledge
14	Understands the impact of varying exchange rates on remittances, foreign travel or foreign purchases	Knowledge
15	Aware of the existence of currency converter tools	Knowledge
16	Can convert prices expressed in different currencies	Skill
17	Takes into account fees and the exchange rate when deciding how to remit or exchange money	Skill
18	Confident to handle transactions in different currencies	Attitude
19	Compares exchange rates from different providers in search for the best quotation	Attitude