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Foreign currency investment managers oversee global transactions and investments. They help their clients maximize profits in currency markets by scrutinizing and comparing daily currency value fluctuations against investment opportunities.

The purpose of currency management is to build and maintain public confidence in the currency by preserving its value and integrity and by making available adequate stocks to meet the demand for currency, which is essential for the proper functioning of the economy.

The currency exposure of an asset, such as stocks, is the sensitivity of that asset's return measured in the investor's domestic currency to fluctuations in exchange rates.

The Federal Reserve System is the central bank of the United States. Referred to as the Fed, it is arguably the most influential economic institution in the world. One of the chief responsibilities set out in the Fed's charter is the management of the total outstanding supply of U.S. dollars and dollar substitutes.

3 Ways to Manage Foreign Exchange Risk Establish a forward contract with a bank or foreign exchange service provider. ... The exporter accepts foreign currency payments only with cash in advance. ... Match foreign currency receipts with expenditures.

Indirect currency intervention is a policy that influences the exchange rate indirectly. Some examples are capital controls (taxes or restrictions on international transactions in assets), and exchange controls (the restriction of trade in currencies).

Currency management is the process by which companies can capture the growth opportunities that result from buying and selling in multiple currencies. Currency management is therefore of strategic value to most firms.

Currency management uses currency hedging and absolute return strategies to minimize the risks of currency exposure and seeks to use currency factors as a source of diversified return.