Cross-border Borrowers-domestic firms sell FX proceeds from foreign borrowing and buy FX to repay FX loans. Foreign firms buy FX from proceeds of borrowing in the domestic market and sell FX to repay domestic currency loans. FX Dealers-maintain inventory in several currencies and stand ready to buy and sell FX at their bid and ask FX rates (assume risk in their inventory currencies. FX Brokers-execute FX buy and sell orders on behalf of their customers fora fee (do not assume risk) Central Banks-buy and sell FX on behalf of government and also as part of foreign reserve and exchange rate management.
