foreign exchange

American  

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

noun

foreign exchanges plural

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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Other Word Forms

Noun Inflected Forms

• foreign exchanges
  plural

Etymology

Origin of foreign exchange

First recorded in 1685–95

Example Sentences

See Examples For:

foreign exchange

He spent years at Goldman Sachs before Dimon persuaded him to join JPMorgan in 2005 to improve its struggling business trading foreign exchange and related derivatives.

From The Wall Street Journal ● Jun. 26, 2026

Why not include fiscal and debt rules or floors on foreign exchange reserves?

From Barron's ● Jun. 23, 2026

Renae Dyer is a foreign exchange reporter for Dow Jones Newswires in London.

From The Wall Street Journal ● Jun. 19, 2026

This point was also emphasized by Goldman Sachs’ global foreign exchange strategists in a note that published Thursday.

From MarketWatch ● Jun. 19, 2026

“Trying to pretend he's a foreign exchange student living in our house, like he always is.”

From "Starfish" by Akemi Dawn Bowman

Related Words

• convertibility