Operations of Foreign Exchange Department of a Commercial Bank

The Foreign Exchange Department of a bank performs foreign exchange operations as well as transactions. The main function of a forex department is to handle foreign inward remittances as well as outward remittances as well as buying and selling of foreign currencies. In some cases, Foreign Currency Account (FCA) is maintained for foreign transactions. The Letter of Credit is a very important import document which is issued by this department of a bank. This department also receives inward foreign remittance from the migrant workers living and working abroad. However, Foreign Exchange Department of a bank plays very important role in a countries economic growth because international business is highly depended on Foreign Exchange Department of a bank. Any foreign currency, traveller's cheques, letters of credit and bills of exchange are processed by this department.