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

Factoring out fluctuations in gas prices and foreign exchange, Costco’s same-store sales rose 6.6%.

From MarketWatch • May 28, 2026

So the foreign exchange market does in roughly four days what global trade does in 12 months.

From Barron's • May 27, 2026

The tariffs follow Prime Minister Narendra Modi’s appeal to citizens to conserve foreign exchange and avoid purchasing gold and jewelry.

From The Wall Street Journal • May 13, 2026

"In the current situation, we must place great emphasis on saving foreign exchange," he added.

From BBC • May 11, 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