GLOSSARY

Currency exchange

Currency exchange definition

Currency exchange is the process of converting one country’s currency into another, enabling international activities such as travel, trade, and investment. This can take place at physical locations like banks and exchange offices, or through digital platforms. Exchange rates fluctuate based on factors like market demand, economic indicators, and geopolitical events.

Business relevance

Currency exchange services often include fees or adjusted rates to generate profit. For businesses, understanding how currency exchange works is essential for controlling international costs and minimising financial risk in foreign transactions.

Effortless 24/7 currency trading and cash management

With amnis, you can trade currencies 24/7 through a flat-rate, self-service platform that lets you execute spot, forward, and limit order transactions anytime, giving you full control with transparent processes. Managing cash in multiple currencies becomes seamless – amnis allows you to automise FX transactions and optimise financial workflows.

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Currency

A currency is a commonly accepted form of payment, typically issued by a government and used within its region. It serves as the physical representation of money, facilitating trade and financial transactions.

Foreign exchange

Foreign exchange (FX) is the global market for exchanging one currency for another. It enables international trade, investment, and travel by converting currencies through real-time exchange rates.

Key currency

A key currency is a stable and widely used currency in international trade and finance that serves as a benchmark for global transactions. It is often held as a reserve by central banks and used for pricing commodities, foreign exchange, and cross-border payments. The British pound, U.S. dollar, euro, and yen are widely considered key currencies.

Prime rate

The prime rate is the interest rate that commercial banks charge their most creditworthy customers, often large corporations. From a currency perspective, it reflects the cost of borrowing in a particular currency and serves as a key indicator of monetary policy. Changes in a country’s prime rate can influence capital flows, foreign exchange rates, and the overall strength or weakness of that currency in global markets.

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About amnis

amnis offers a comprehensive platform for international banking, offering a range of tools in one place. Transfer money abroad, exchange currencies 24/7 and collect international money transfer with your own IBAN accounts supporting 20+ currencies. Founded in 2014 in Zurich, amnis is a regulated payment institution under the supervision of the Banking Supervision Section in Liechtenstein (FMA) within the EEA.

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