Currencies Trading
Many people think currencies like US dollars, Pounds and their national currencies can only be spent on goods and services but their functionalities are far more than paying for goods and services. Just the same way assets like bonds, stocks and shares are traded and exchanged, currrencies can be traded and exchanged also. Currencies trading occurs within specified time a country opens and closes the market and it happens in pairs if other national currencies.
Exactly sir!
In addition countries use their foreign exchange reserves to keep the value of their currencies at a fixed rate and a good example is seen in China...the yuan to dollar exchange rate. When China stockpiles dollars, it raises the dollar value compared to that of the yuan. So therefore it makes Chinese exports cheaper than American-made goods, increasing sales.
Its obvious that foreign currencies are not used only for buying and selling*