foreign exchange

[fawr-in iks-cheynj, for-]

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

foreign exchange

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

foreign exchange

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.)

Word History and Origins

Origin of foreign exchange¹

First recorded in 1685–95

Example Sentences

A British trader who was jailed in the United States for allegedly manipulating foreign exchange rates has had his conviction overturned after a nine-year struggle for justice.

From BBC

While he would usually import items for his shop, like office supplies, pens and notepads, the lack of foreign exchange means he is now trying to access goods locally.

From BBC

The remittance tax could squeeze Indian household budgets, dampen consumption and investment, and undermine one of India's steadiest sources of foreign exchange, warns a brief by the Delhi-based Centre for WTO Studies.

From BBC

An official memo seen by BBC's US partner CBS ordered a temporary pause in appointments as the state department prepares to increase social media vetting of applicants for student and foreign exchange visas.

From BBC

The message said social media vetting would be stepped up for student and foreign exchange visas, which would have "significant implications" for embassies and consulates.

From BBC

Related Words

• convertibility www.thesaurus.com