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

Because it opens up flows of foreign exchange and encourages investment in local infrastructure, tourism is often touted as a route to prosperity and stability for struggling countries.

From Time

If you want to send money to someone living in another country, traditional retail banks charge a lot in foreign exchange fees, foreign transaction fees, etc.

From TechCrunch

Tourism is the largest industry, employing 800,000 people, and is the country’s main source of foreign exchange.

From Time

It has built up foreign exchange reserves of more than $180 billion, placing it at No.

From Washington Post

Global travel restrictions have shut down the island’s tourism sector – the primary market for the businesses run by self-employed Cubans and a crucial source of foreign exchange for the government.

From Time

“They get paid for their oil in dollars,” said David Solin, a partner at Foreign Exchange Analytics in Essex, Connecticut.

From The Daily Beast

Even the big name foreign-exchange traders, usually among the most risk-prone, are feeling fearful.

From The Daily Beast

Our exports again exceed our imports, and foreign exchange is at 7-1/4 in gold, or two per cent below par.

From Project Gutenberg

It was in vain to talk to him of the rates of foreign exchange in the mystic jargon of the Bourse.

From Project Gutenberg

These were established to deal with foreign exchange and to facilitate trade with other countries.

From Project Gutenberg

It is quite in order that we should follow lessons on the clearing-house and commercial drafts with a lesson on foreign exchange.

From Project Gutenberg

Cotton was gold, foreign exchange, individual wealth, national solvency.

From Project Gutenberg

Related Words

• convertibility