Spot FX
The spot market exchanges currencies for near-immediate delivery. Quotes are conventionally given as units of quote currency per one unit of base currency (EUR/USD, USD/JPY).
Foreign exchange is the market where one currency is priced in another. This page explains the machinery — spot, forwards, reserves and settlement — without quoting live rates.
Forwards & swaps
Forwards lock a rate for a future date; FX swaps combine a spot trade with a reverse forward. Corporates and banks use them to hedge receivables and fund foreign assets.
Reserve currencies
Central banks hold foreign assets — mostly US Treasuries and other safe debt — as insurance and for intervention. The dollar still dominates reported allocated reserves.
Vehicle currencies
Some currencies are used to invoice trade between third countries. The dollar remains the main vehicle; the euro is second in many European and Mediterranean corridors.
Settlement plumbing
CLS and correspondent banking settle FX risk; RTGS systems settle domestic large-value payments. Cross-border retail still often rides cards and remittance networks.
Why rates move
Interest differentials, inflation, growth, politics and risk appetite all move exchange rates. Educational atlases record regimes and crises; they do not forecast tomorrow's tick.