The purchase and sale of international currencies takes place in a foreign exchange (FX) market. Banks and other financial institutions make up the largest percentage of participants, who trade on the FX market for a variety of reasons, including the following:
Protecting themselves from loss because of changes in exchange rates
Acquiring the foreign currency necessary to buy goods and services from other countries
Learn More
(Comptroller's Handbook – Section 813, March 1990) Provides background and guidelines for examiners responsible for evaluating a bank's foreign exchange activities
References
(BC 216, September 1986) Covers OCC policies concerning ownership of securities not denominated in U.S. dollars
