外国為替 (がいこくかわせ) refers to foreign exchange, which is the process of converting one currency into another. This is essential for international trade, travel, and investment, as it allows businesses and individuals to conduct transactions across different countries. The value of currencies fluctuates based on various factors, including economic conditions, interest rates, and geopolitical events. In the foreign exchange market, currencies are traded in pairs, such as USD/JPY or EUR/GBP. This market operates 24 hours a day, enabling participants like banks, corporations, and individual traders to buy and sell currencies. The exchange rates determine how much of one currency is needed to purchase another, influencing global economic activity.