Q:

What are foreign currency banks?

A:

Quick Answer

Foreign currency banks are financial institutions that manage the process of converting one country's currency into a different type of currency from another country. Banks use the fluctuating currency exchange rate to determine the value of each type of currency on any given day.

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Full Answer

Foreign currency banks facilitate business operations internationally since each country needs to be able to convert their own currency into the currency of the country they are working with in order to complete business transactions. The banks are the go-between for companies either buying or selling their currency, and the price foreign currency banks charge for the currency varies according to the value of each country's money on any given day.

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