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

Noun Inflected Forms

• foreign exchanges
  plural

Etymology

Origin of foreign exchange

First recorded in 1685–95

Example Sentences

See Examples For:

foreign exchange

The "coordinated foreign exchange actions countered disorderly yen movements," Bessent said in a social media post.

From BBC ● Aug. 3, 2026

US Treasury Secretary Scott Bessent similarly said in his X post: "Friday's coordinated foreign exchange actions countered disorderly yen movements."

From Barron's ● Aug. 2, 2026

China has long imposed strict foreign exchange controls on its citizens in order to maintain regulatory sovereignty and stabilise the valuation of its currency, the yuan.

From Barron's ● Jul. 3, 2026

With the U.S. and Iran signing a memorandum of understanding in June to end the war, the U.S. labor market comes into more focus for foreign exchange markets, Commerzbank’s Volkmar Baur said in a note.

From The Wall Street Journal ● Jul. 2, 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