Markfin - Module 6 Activities

Learning Check: Foreign Exchange

Foreign exchange is identified as the trading of different national currencies across
different countries. It is important since the exchange rate helps the people and authorities to
determine the economic health of a certain nation or country. In addition, this also helps to know
the well-being of the people residing in the said country. During this time of pandemic, COVID-
19 has significantly affected the foreign exchange. It has led for a lot of countries to experience
financial shock which resulted for the economic health and global financial safety to be
threatened. Given such, the foreign exchange rate from different countries declined which is an
implication that the country is experiencing a weakening of its economy.

In two sentences, please give a short discussion of your learning in relation to the Foreign
Exchange Market.
Based from the given module, foreign exchange market is play an integral role in allowing firms
to enter into transactions using foreign currencies and then converting it to the currencies that
they want. On the other hand, the foreign exchange rate present in the foreign exchange market
is also beneficial in determining the economic health of a certain country including the well-
being of the people residing in the said country.