Question

How important is foreign exchange to ones country

Answer 1

foreign  exchange is the trading of different national  currencies  or  unite of account.it is   important because the exchange  rate,  the price of  one currency in  terms   of  another,  helps  to  determine  a nation's  economic health  and  have  well-being of  all  people  residing  in it.

i  hope  it's  helpful

Answer 2

Explanation:

1. During any Crisis Foreign exchange reserves come to the rescue of any country. It absorbs the distress related to such crisis.

2. It increases the confidence in the monetary and exchange rate policies of the government.

. 3. Foreign exchange reserves are the foreign currencies held by the Country’s Central Bank. They are also called Foreign currency reserves (or) Foreign reserves. They manage their currencies.

Thus foreign exchange is important to any country.