Definition ∞ International finance pertains to the study of monetary and financial interactions between countries. This field examines foreign exchange rates, international investment, and the global financial system. It encompasses cross-border capital flows, trade financing, and the policies of international financial institutions. Understanding international finance is essential for assessing global economic stability.
Context ∞ The rise of digital assets has introduced new dimensions to international finance, frequently discussed in economic news. Cryptocurrencies challenge traditional cross-border payment systems and capital controls. Regulatory bodies are grappling with how to integrate these novel instruments into existing international financial frameworks.
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