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

Warner generated $8.9 billion in revenue, a 3% decline from the same quarter one year ago, excluding the effect of foreign exchange rate fluctuations.

From Los Angeles Times • May 6, 2026

Officials were said to have spent at least $32 billion in the foreign exchange market, according to multiple reports, in its first such move to prop up the yen since 2024.

From Barron's • May 4, 2026

On Wednesday, Bessent added that many US allies in the Gulf, as well as some Asian countries, have requested foreign exchange swap lines.

From Barron's • Apr. 22, 2026

“They are targeting parts of the economy that are outward facing, that are bringing in foreign exchange which could be redistributed and directed at basic needs.”

From The Wall Street Journal • Apr. 16, 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