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Importers and exporters do not use the same currency. 1________________________. Exchange brokers and dealers deal in foreign exchange (FOREX) transactions. 2____________________________. For example, one day the exchange rate is 0.526 pound sterling to a dollar. 3__________________________. 4___________________________________.
The international currency market consists of a net of international banks.
The exchange rates change (or fluctuate) from day to day.
Another day it is 0.520 pound sterling to a dollar.
Dealers and banks choose the best rates and profit by FOREX dealing.