- commercial paper drawn on a person or corporation in a foreign nation.
- the process of balancing accounts in commercial transactions between business organizations of different nations.
Origin of foreign exchange
- the system by which one currency is converted into another, enabling international transactions to take place without the physical transportation of gold
- foreign bills and currencies
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.)