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

Related Words

• convertibility www.thesaurus.com