What happens to money when it is converted?

I would appreciate if someone could give me a detailed process of what happens to both sides of the money when it is converted.


Lets say I have 10 million dollars and I convert it to all yen.

Does the dollar simply dissapear from the world pool of dollars with a bigger pool of yen?

I know its elementary to some of you , but I do not deal much with currency.

Thanks for your input in advance.

 

someone who gave you the yen has less yen, and more dollar in the pocket.

 

"converting $ to Yen" means you sell $ and buy Yen... So there's a counterparty who does the exact opposite: selling Yen and buying $.

It's the same as selling gold for example: You convert gold into $ (or whatever currency you want).

 

Ok thanks for the replies, I am clear now.