Administration of Foreign Exchange ; Authorised person , Authorised dealer

Administration of Foreign Exchange (AFE) refers to the regulatory framework governing foreign exchange transactions and controls in a country. The AFE is typically managed by the central bank or other government agencies responsible for overseeing foreign exchange policies and transactions.

An Authorized Person (AP) is an individual or institution that is authorized by the central bank or other regulatory body to engage in foreign exchange transactions within a country. An AP may include banks, financial institutions, or other entities that have been licensed to operate in the foreign exchange market.

An Authorized Dealer (AD) is a type of AP that has been specifically authorized by the central bank to buy and sell foreign currency and other financial instruments on behalf of its customers. ADs are typically banks or other financial institutions that have met specific regulatory requirements and have been granted a license to operate as an AD.

ADs play an important role in the foreign exchange market, as they are responsible for executing foreign exchange transactions on behalf of their customers and ensuring compliance with regulatory requirements. They may also provide advisory services and other support to customers engaged in foreign exchange transactions.

In some countries, the distinction between APs and ADs may not be as clear, and the regulatory framework for foreign exchange transactions may be more complex. However, in general, the role of APs and ADs is to facilitate foreign exchange transactions and ensure compliance with regulatory requirements to promote stability and efficiency in the foreign exchange market.