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

While foreign exchange rates remained a headwind, this was previously flagged at the third-quarter results, Pepper says.

From The Wall Street Journal

Despite being a relatively small part of the economy, agriculture is a key employer in rural areas and in normal times provides vital foreign exchange through meat and livestock exports.

From BBC

A year ago, Marc Chandler, a veteran currency strategist now at Bannockburn Capital Markets, argued that the dollar wasn’t at risk of being dethroned during an onstage debate at a foreign exchange conference.

From Barron's

Dollar positioning reached its most negative in more than 14 years, according to the BofA’s latest foreign exchange and rates sentiment survey.

From The Wall Street Journal

In foreign exchange, the dollar rose against the British pound as official data showed UK unemployment rising to a five-year high.

From Barron's

Related Words

• convertibility