foreign exchange

[ fawr-in iks-cheynj, for- ]

noun

1. commercial paper drawn on a person or corporation in a foreign nation. : FX
2. the process of balancing accounts in commercial transactions between business organizations of different nations. : FX

foreign exchange

noun

1. the system by which one currency is converted into another, enabling international transactions to take place without the physical transportation of gold
2. foreign bills and currencies

foreign exchange

1. The ways in which debts between two nations that use different currencies are paid. Foreign exchange rates can have an important effect on a nation's economy, because the value of its currency in other countries affects the cost of both imported and exported goods and services . ( See balance of payments .)

Word History and Origins

Origin of foreign exchange¹

First recorded in 1685–95

Example Sentences

Its accounts are quick to open and offer competitive foreign exchange rates in an easy-to-use app.

From BBC

British GPs, staff at foreign exchange firm Travelex, medics at Rouen hospital in France and employees of Lincolnshire County Council have all experienced this.

From BBC

This summer a group of high school students brought a whole new meaning to foreign exchange programs.

From Los Angeles Times

Inflation has skyrocketed, its foreign exchange reserves have dropped precipitously, and its foreign debt has doubled since 2016.

From BBC

Work and classes have been halted there while stock and foreign exchange trading were suspended.

From BBC

Related Words

• convertibility