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

While markets had appeared unfazed by bubbling geopolitical issues headed into the year, the rapid escalation in trade tensions over Greenland changed that, said Thierry Wizman, global foreign exchange and interest rate strategist at Macquarie.

From BBC

Ghana's Gold Board spokesman, Prince Minkah said new licensing and tracking systems have helped formalise the trade and boost foreign exchange earnings.

From Barron's

“I could have it go up or go down like a yo-yo,” he said, but added that it should just “seek its own level” on foreign exchange markets, “which is the fair thing to do.”

From Barron's

The company anticipates 2026 adjusted earnings per share in the range of $7.70 to $8.10, based on global economic activity and foreign exchange rates, continuing softness in global industrial production, and mixed demand across markets.

From The Wall Street Journal

The company faces increased U.S. competition, broader dollar risks following recent foreign exchange moves, and declining German broadband net adds, all contributing to investor caution, they say.

From The Wall Street Journal

Related Words

• convertibility