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

Bigger ructions were seen in the foreign exchange and bond markets.

From MarketWatch ● Aug. 25, 2026

The dollar the world's primary reserve currency, meaning it is held by central banks around the world in large quantities as part of their foreign exchange reserves.

From BBC ● Aug. 21, 2026

The new forecast reflects "changes in the external environment such as foreign exchange assumptions, as well as marketing efforts including the establishment of alternative logistics routes to the Middle East", it said.

From Barron's ● Aug. 4, 2026

Figures are adjusted for gains and losses from hedging instruments, foreign exchange derivatives and other items.

From The Wall Street Journal ● Jul. 23, 2026

I thought the soldiers would be against such black-market foreign exchange, but they didn’t seem to care.

From "A Long Way Gone: Memoirs of a Boy Soldier" by Ishmael Beah

Related Words

• convertibility