2. Huge Amounts of Currency
Similarly, if they have to import goods or services, then businesses will often have to pay in a foreign currency, requiring them to first convert their home currency into foreign currency. Large companies convert huge amounts of currency each year. The timing of when they convert can have a large effect on their balance sheet and bottom line. Investors and speculators require currency exchange whenever they trade in any foreign investment, be that equities, bonds, bank deposits, or real estate.