Currency exchange means changing money from one country’s currency to another. It is very important for world trade, travel, and investment. By allowing people and businesses to use different currencies, currency exchange helps companies, tourists, and governments do business across borders.

The exchange rate, which shows how much one currency is worth compared to another, affects the prices of things countries buy and sell, the cost of living, and how steady an economy is. Central banks and financial groups watch exchange rates closely to help guide their economic plans.

When people travel, they need to exchange money so they can spend it in another country. For investors, changes in exchange rates can bring chances to make money but also risks. In the end, currency exchange keeps the world economy connected and running smoothly.