Trade between countries requires a process for exchanging different currencies because each country has its own unique currency. In order to conduct international trade transactions, businesses must convert their domestic currency into the foreign currency of the country they are trading with. This currency exchange process allows businesses to accurately price their goods and services, make and receive payments, and manage their foreign exchange risk. Additionally, fluctuations in exchange rates can impact the profitability of international trade transactions, so businesses must carefully monitor and manage their currency exchange processes to minimize risks and ensure financial stability.
