Definition of Foreign Exchange, Source of Foreign Exchange and Function of Foreign Exchange (Complete)
Definition of Foreign Exchange, Source of Foreign Exchange and Function of Foreign Exchange (Complete) – For the discussion of this article about foreign exchange. Maybe some people are already familiar with the term foreign exchange. However, some people still don't know what foreign exchange is.
Definition of Foreign Exchange, Source of Foreign Exchange and Function of Foreign Exchange (Complete)
For this reason, we want to discuss it so that every reader who reads this article can understand the true meaning of foreign exchange. For this reason, we will immediately start discussing this article, which will be explained below.
Definition of Foreign Exchange
Foreign exchange is all goods that can be used as a means of international payment. And there is also another understanding of foreign exchange, namely foreign exchange is an amount of foreign exchange to finance an international trade transaction. Foreign exchange also consists of foreign currency, namely the currency accepted by all countries in the world, namely the US Dollar ($), Japanese Yen, Euro, Pound Sterling (UK), French-Franc, Swiss-Franc, Dollar-Canada, DM (Deutshe Mark) Germany, securities and also gold which are valid as payment international.
This is included in the supervision of the monetary authority, namely the Central Bank. Foreign exchange is the same as a function of money in general, but foreign exchange is different in international or inter-country transactions which is a means of payment between countries, exchange of goods and services, hoarding wealth, monetary reserves, and measuring riches.
The government is obliged to have foreign exchange reserves so that international trade can maintain a country's monetary and macroeconomic stability. And foreign exchange reserves are a strong or weak monetary indicator of a country's economy.
Meanwhile, the definition of foreign exchange reserves is the amount of foreign currency reserved by the Central Bank (Bank Indonesia) for an individual financing needs and also foreign obligations, for example, such as import financing and other financing to parties foreign.
Foreign Exchange Sources
After the meaning has been explained, for the next one it will be explained about the sources of foreign exchange from a country which will be explained in the following.
- From goods export activities
- An organization of services
- Tourist
- Foreign loans
- Grants and gifts from abroad
- If citizens work abroad
Types of Foreign Exchange
Apart from the two explanations that have been given, there is still another explanation that will be given below.
General Foreign Exchange
Is a type of foreign exchange that can be obtained without any obligation to return, for example exports, the provision of services and also others.
Credit Exchange
Is a type of foreign exchange that can be obtained with a condition to repay, for example, a foreign loan.
Foreign Exchange Function
There have been three explanations given, but there are still further explanations which will be explained below.
- As a means of payment of foreign debt.
- As a means of financing an international relationship, for example, such as official travel, diplomatic sovereignty, consultants and so forth.
- For international payment instruments such as exports, imports and so on.
- As a source of state revenue, and also many others.
So many explanations that can be given about knowledge briefly about Definition of Foreign Exchange, Source of Foreign Exchange and Complete Function of Foreign Exchange, I hope reading this article can add insight and knowledge to readers, hopefully this is useful 🙂
List of contents
Recommendation:
- 6 Types of International Law Subjects 6 Types of International Law Subjects - The definition of an International Law subject is as the owner, holder or supporter of rights and bearer of obligations under international law. In the beginning, and birth and growth…
- 43 Understanding of Leadership According to Experts (Discuss in full) 43 Definitions of Leadership According to Experts (Discuss Completely) - We must be familiar with the word leadership, in our daily life sometimes we do not realize that everything exists relationship...
- Microscope Images: Definition, History, Types, Parts, How to… Microscope Images: Definition, History, Types, Parts, How Microscopes Work and Care - How close are they do you recognize the shape and function of a microscope? At this time, about the knowledge Microscope…
- Ribosomes: Definition, Types, Functions, Forms, and Structures Ribosomes: Definition, Types, Functions, Shapes, and Structures - Ever heard of the term ribosome? On this occasion, we will discuss what is meant by ribosomes? Let's see the explanation...
- Protected Forest: Definition, Function, Legal Basis for Protecting… Protected Forest: Definition, Function, Legal Basis for Protection and Examples - What is meant by protected forest? On this occasion, Seputarknowledge.co.id will discuss it and of course other things Also…
- √ 9 Definitions of International Organizations, Kinds, Objectives &… 9 Definition of International Organizations, Types, Purpose & Examples - In this discussion, we will explain about International Organizations. The discussion includes understanding, various types of international organizations, goals and examples of International Organizations.
- Public Law: Definition, Types, Characteristics and Division of Law Public Law: Definition, Types, Characteristics and Division of Law - Law according to its content is divided into two, namely public law and private law. On this occasion, Seputarknowledge.co.id will discuss whether it is the Law of…
- 30 Understanding of Democracy According to Experts (Discussion… 30 Definition of Democracy According to Experts (Full Discussion) - This discussion will explain what it is about the literal meaning of democracy and in terms as well as the notions of democracy explained by the experts.
- Types of Official Letters, Characteristics, Functions and Examples Types of Official Letters, Characteristics, Functions and Examples - What are the types of official letters? On this occasion, Seputarknowledge.co.id will discuss it and of course about other things as well covered it. Let…
- √ Definition of International Agreements, Functions, Terms,… Definition of International Agreements, Functions, Terms, Classification, Types, Stages & Cancellations - In this discussion, you will learn about International Agreements. Which includes the meaning, function, terms, classification, types, stages and discussion of…
- Badminton Game: History, Techniques, Rules, Means… Badminton Game: History, Techniques, Regulations, Facilities and Infrastructure - On this occasion About the knowledge.co.id will discuss the game of badminton and of course about other things as well covered it. Let's see…
- History of the United Nations (United Nations), Principles and… History of the United Nations (UN), Principles and Purpose – For this meeting we will discuss articles about the history of the United Nations (UN) as well as principles and also the goal. Of course we often hear...
- √ Definition of Goods Inventory According to Experts (Complete) Definition of Inventory of Goods According to Experts (Complete) - In this discussion we will discuss an article regarding inventory. Of course, some people are already familiar with the supply of goods, what...
- Pre-literate Age: Definition, Age Division, Types… Pre-literate Age: Definition, Age Division, Types of Humans, and Their Legacy - What is meant by The Age of Pre-literacy? On this occasion, Around the Knowledge.co.id will discuss what is the Age of Pre-literacy and other things Which…
- Direct and Indirect Sentences: Definition, Characteristics,… Direct and Indirect Sentences: Definition, Characteristics, Differences and Examples - What are Direct and Indirect Sentences Indirect Sentences? On this occasion, Seputarknowledge.co.id will discuss both. Let's take a look together…
- Westernization Is: Characteristics, Impact, Media and Examples Westernization Is: Characteristics, Impact, Media and Examples – On this occasion, Around Knowledge will discuss Westernization. Which in this discussion explains the meaning of westernization, characteristics, impacts, patterns, media...
- Khiyar Is: Definition, Basic Law, Types And Impacts… Khiyar Is: Definition, Basic Law, Types and Impacts of Its Application - Is that what is meant by khiyar law?, On this occasion, Se regarding the knowledge.co.id will discuss it and of course regarding matters other…
- Optical Instruments: Definition, Functions, Types and Parts Optical Instruments: Definition, Functions, Types and Parts - What are optical devices and what are their types? On this occasion, Seputarknowledge.co.id will discuss it and of course other things that...
- Kutai Kingdom: Founder, Lineage, Heyday and… Kutai Kingdom: Founder, Lineage, Heyday and Fall and Legacy - What is the history of the kingdom Kutai, which is located in Kalimantan? On this occasion, Se regarding the knowledge.co.id will discuss the kingdom of Kutai And…
- 31 Benefits of Tomatoes for Skin Health & Beauty 31 Benefits of Tomatoes for Health & Facial Skin Beauty - Tomatoes are one of the plants found in South America, tomatoes are in the family of green or red peppers, potatoes. Amongst the community…
- The Collapse of the Kediri Kingdom: History and Legacy The Fall of the Kediri Kingdom: History and Legacy - The Kediri Kingdom or the Kadiri Kingdom or the Panjalu Kingdom was a kingdom that existed in East Java between 1042-1222. The kingdom is in the city…
- Characteristics of Traditional Dances: Understanding According to Experts,… Characteristics of Traditional Dance: Definition According to Experts, Types, Elements and Examples - What is traditional dance? Traditional dance is a dance originating from a group of people in an area that has been passed down from generation to generation...
- Qiyas: Definition, Pillars, Propositions, Elements, Conditions and… Qiyas: Definition, Pillars, Postulates, Elements, Terms and Distribution - What is meant by Qiyas? On this occasion, Seputarknowledge.co.id will discuss it and of course other things that also cover it. Let…
- Definition of Floor Gymnastics: History, Types, Elements and… Definition of Floor Gymnastics: History, Types, Elements and Benefits of Floor Gymnastics - What is Floor Gymnastics and examples? On this occasion, Seputarknowledge.co.id will discuss Floor Gymnastics...
- Computer Hardware: How it Works, Types, Examples and… Computer Hardware: How it Works, Types, Examples and Functions - In today's computerized era, we are definitely familiar with computers and their devices. However, some may not know...
- Example of Cultural Arts Questions for Class 10 (X) SMA/MA/SMK Semester 1… Examples of Class 10 (X) Cultural Arts Questions for SMA/MA/SMK Semesters 1 and 2 (2019 and 2020) - On this occasion, Seputarknowledge.co.id will discuss Multiple Choice Class 10 Cultural Arts Questions and Essay…
- Karate: Definition, History, Basic Techniques and Flow Karate: Definition, History, Basic Techniques and Trends - What is Karate? On this occasion, AboutKnowledge.co.id will discuss what Karate is and other things about it. Let's take a look at the discussion on...
- 51 Complete Understanding of Law According to Experts 51 Understanding of Law According to the Most Complete Experts - Everyone is familiar with the word "law" because everyone will be bound by law, be it state law, religious law,…
- Preface: Definition, Structure and Examples Preface: Definition, Structure and Examples - How to write a good Preface ?On this occasion, Around the Knowledge.co.id will discuss what is the Preface and other things about it. Let's see…
- √ Definition of Balance of Payments, Components, Types and… Definition of Balance of Payments, Components, Types and Functions - In this discussion we will explain the balance of payments. Which includes the understanding of the balance of payments, components, types and functions of the balance of payments...