Everyone knows that the national currency of any country is only useful in its boundary. But when we have to do business out side the country then the native currency becomes useless. At this stage we need the currency of that country with which we are doing trade.
In the market for foreign exchange (forex), people trade one country's money for another's. If, for example, you decide to travel to Thailand, you will need to buy some bahts, the currency of Thailand, either before you go or once you get there. In your transaction, you will supply dollars to the foreign exchange market and demand bahts.
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