Foreign Exchange


An international marketer needs to transact financial transfers across nation lines in order to close deals. The financial transfers from one country to another are made through the medium of foreign exchange.

Foreign exchange is the monetary mechanism by which transactions involving two or more currencies take place. Transacting foreign exchange deals presents two problems. First, each country has its own methods and procedures for effecting foreign exchanges—usually developed by its central bank. The transactions themselves take place through the banking system. Thus, both the methods and procedures of the central bank and commercial banking constraints must be thoroughly understood and followed to compete a foreign exchange transaction.

The second problem involves the fluctuation of  the rates of exchange. Fluctuations in exchange rates are based on the supply and demand of different currencies. The rate of exchange between two countries can fluctuate from day to day. This produces a great deal of uncertainty since a business person cannot know the exact value of foreign obligations and claims.

To appreciate fully the complexities of foreign exchange, a few terms must be understood. Their understanding also will provide a historical perspective on the making of payments across national boundaries. The terms are gold standard, gold exchange standard, gold bullion standard, inconvertible currencies, and hard and soft currencies.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Preparing Minutes


There are two primary rules for minute preparation:

  1. Write Minutes as Soon as Possible: Time edges into memory faster than most people realize. Events which just took place are more clearly in mind than those occurring 24 hours ago. Write minutes as soon as possible after a session. Do not delay minute preparation. Notes are grand, and the better your notes, the better the minutes you will write. But notes are no substitute for accurate recall plus notes. This is why, in the absence of a manager being assigned to record the minutes, the group leader should either take full responsibility for the task or, immediately, at the beginning of the meeting, assign it to someone. Recall is important. That’s why the minutes should always be done as soon after the session as possible. Not as soon as convenient. As soon as possible. The minutes should never be written by anyone other than a person in attendance who took notes. Those notes, no matter how copious, passed to someone who was not in attendance, will not produce quality minutes.
  2. State Important Facts Briefly but Thoroughly: When writing the minutes, be brief but be as thorough as possible. In minutes, the requirement is names and dates and figures. Many minutes recount each motion and even the major directions and positions in the discussions. Too few tell who forged those directions and who took and/or held those positions. To be valuable, minutes must be thorough.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight