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 jump was thanks largely to unrealized changes in the value of derivative financial instruments used to manage foreign exchange, interest rate and commodity price risks, Enbridge said.

From The Wall Street Journal

The Danish jeweler is navigating the uncertainty around changes in precious-metal prices as well as other headwinds such as foreign exchange rates, and tariffs in the U.S.

From The Wall Street Journal

International sales increased 7%, driven mainly by a favorable price mix and foreign exchange rates, and higher volume.

From The Wall Street Journal

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

Related Words

• convertibility