foreign exchange

American  

[fawr-in iks-cheynj, for-] / ˈfɔr ɪn ɪksˈtʃeɪndʒ, ˈfɒr- /

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

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foreign exchange British  

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

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foreign exchange Cultural  

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.)

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Etymology

Origin of foreign exchange

First recorded in 1685–95

Example Sentences

The rupee strengthened markedly against the dollar in Monday trading after the Reserve Bank of India set limits for on open foreign exchange positions involving the rupee.

From The Wall Street Journal

They, along with traders who join the Basij, get access to foreign exchange at preferential rates to import goods and get priority for state contracts, says Mustapha Pakzad, a former financial consultant in Tehran.

From The Wall Street Journal

By March 5, nearly one-third of these funds had been transferred to foreign exchanges.

From Barron's

Managed futures funds forecast market trends by investing either long or short in futures contracts across a range of asset classes, including metals, soft commodities, foreign exchange, and U.S. bonds.

From Barron's

“Our takeaway from this week of central bank decisions hasn’t changed: not enough guidance has been offered to dent oil’s role as a major market driver,” said ING’s foreign exchange strategist, Francesco Pesole.

From Barron's

Related Words

• convertibility