The function

[Danielc81]

The function of the Forex is to allow foreign countries to trade as well as to assist international investment by allowing countries to convert one currency into another. So for example, a company in America that was buying stock from Britain can buy that product and pay in British pounds. It also facilitates speculation as investors can buy up low-yielding currencies and lend out high-yielding currencies although this kind of speculation has been the cause of controversies as it is said to adversely affect poor performance countries leading to their loss of competitiveness on the global market.