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

Inflected Forms

noun

• foreign exchanges
  plural

Etymology

Origin of foreign exchange

First recorded in 1685–95

Example Sentences

Following the data release, China’s foreign exchange regulator attributed the increase to a valuation effect, driven by a fluctuating U.S. dollar and gains in global financial asset prices.

From The Wall Street Journal • Jun. 7, 2026

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

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

From MarketWatch • May 28, 2026

The bank has extended these quantum-secure communications across its internal systems and simulated foreign exchange transactions.

From Barron's • May 22, 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