A currency is a unit of value.
When you buy something, you need to pay the amount in foreign currency that it is worth.
When someone buys something from you, they want to receive the value in that currency.
You can safely hold foreign currency in a savings account, but not all foreign currency is created equal.
When the value of a currency drops, that currency is devalued.
If your bank offers a safe haven, like a foreign exchange market, you can store your foreign currency for later use.
You should also know that foreign exchange rates fluctuate a lot, and there are risks associated with trading foreign currency.
Here are some common foreign exchange risk factors: When a currency is on the move.
The U.S. dollar and other currencies can be on the rise or falling in value.
The global economy is in flux.
Investors are moving their money to safer assets, like gold or silver, which tend to have lower rates.
Investors want to hold their money as long as possible to minimize the impact on the economy.
If you buy or sell a foreign currency, you could lose money.