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

The total of foreign exchange reserves increased by $31.7 billion to $3.442 trillion in May, said the People’s Bank of China.

From The Wall Street Journal • Jun. 7, 2026

At a public meeting in Hyderabad last month, Mr. Modi appealed to Indians to cut down on gold imports and foreign travel to conserve foreign exchange.

From The Wall Street Journal • Jun. 3, 2026

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

From MarketWatch • May 28, 2026

The latest move comes as authorities ramp up austerity measures to curb fuel consumption and conserve foreign exchange.

From Barron's • May 15, 2026

“These are María’s very good friends. They met two summers ago when María did a high school foreign exchange program in Berlin. That girl has tremendous ambitions. All three of them.”

From "Marcus Vega Doesn't Speak Spanish" by Pablo Cartaya

Related Words

• convertibility