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

With the financial situation already strained, the government is also worried that they will lose foreign exchange inflows due to the Gulf war.

From BBC • Apr. 11, 2026

The Street likely has yet to factor in a lower foreign exchange tailwind to its estimate, Gawrelski said.

From Barron's • Apr. 2, 2026

The rupee strengthened markedly against the dollar in Monday trading after the Reserve Bank of India set limits for on open foreign exchange positions involving the rupee.

From The Wall Street Journal • Mar. 30, 2026

Sri Lanka defaulted on its $46 billion foreign debt in 2022 after the country ran out of foreign exchange.

From Barron's • Mar. 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