foreign exchange

American  

[fawr-in iks-chaynj, 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

Noun Inflected Forms

• foreign exchanges
  plural

Etymology

Origin of foreign exchange

First recorded in 1685–95

Example Sentences

See Examples For:

foreign exchange

It is a channel for Egyptians working in the Gulf to send home remittances, an important foreign exchange earner for Egypt.

From The Wall Street Journal ● Aug. 28, 2026

The index is measured using inputs including a basket of about 100 high-yield corporate credit default swaps, G10 foreign exchange volatility and S&P 500 commodity trading-advisor positioning.

From MarketWatch ● Aug. 25, 2026

The dollar the world's primary reserve currency, meaning it is held by central banks around the world in large quantities as part of their foreign exchange reserves.

From BBC ● Aug. 21, 2026

Expectations of foreign exchange intervention and the government’s potential tolerance for Bank of Japan interest-rate hikes could ease inflation risks.

From The Wall Street Journal ● Aug. 18, 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