Plain-English definitions for the terms you'll encounter on your financial journey.
A regime where the currency price of a nation is set by the forex market based on supply and demand relative to other currencies. Most major global economies use this system.
The global marketplace where currencies are traded against one another to determine their relative values.
Foreign Exchange Market — A global marketplace where national currencies are traded against one another to determine exchange rates. It is the largest and most liquid financial market in the world.
Assets held on reserve by a central bank in foreign currencies to back liabilities and influence monetary policy.