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Physical exchange of one currency for another is the actual transfer of one currency to another. It involves the exchange of physical cash or a transfer of funds from one account to another in order to complete the transaction.

This type of exchange is often conducted by individuals or businesses that have a need to purchase goods or services in a different currency, or for those who are traveling to another country and require the local currency for expenses.

Physical currency exchange can take place in a variety of settings, including banks, currency exchange offices, and airports. The exchange rate at the time of the transaction will determine the value of the exchanged currency.

It is important to note that physical currency exchange can be subject to fees and commissions, as well as potential risks associated with carrying physical cash. As such, many individuals and businesses choose to conduct currency exchange through electronic means, such as wire transfers or online payment platforms.

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