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

However, the loss on the sale is subject to further changes, including as a result of foreign exchange movements, according to Citigroup.

From The Wall Street Journal

The cyclone struck as Sri Lanka was emerging from its worst-ever economic meltdown in 2022, when it ran out of foreign exchange reserves to pay for essential imports such as food, fuel and medicines.

From Barron's

This combination is more supportive for EM local debt and healthier for foreign exchange markets than what we have seen in recent years, particularly in the wake of the pandemic.

From Barron's

At current levels, it’s now approaching levels last seen in the summer of 2024, when Japan’s Ministry of Finance intervened in foreign exchange markets to prevent the yen from further weakening.

From Barron's

At current levels, it’s now approaching levels last seen in the summer of 2024, when Japan’s Ministry of Finance intervened in foreign exchange markets to prevent the yen from further weakening.

From Barron's

Related Words

• convertibility