foreign exchange


foreign exchange

noun

: the process by which people in different countries pay each other by exchanging different types of money

: money from foreign countries

Full Definition of FOREIGN EXCHANGE

1
:  a process of settling accounts or debts between persons residing in different countries
2
:  foreign currency or current short-term credit instruments payable in such currency

Examples of FOREIGN EXCHANGE

  1. Our country has to export more in order to earn more foreign exchange.

First Known Use of FOREIGN EXCHANGE

1691

Rhymes with FOREIGN EXCHANGE

foreign exchange

noun    (Concise Encyclopedia)

Purchase or sale of one national currency in exchange for another nation's currency, usually conducted in a market setting. Foreign exchange makes possible international transactions such as imports and exports and the movement of capital between countries. The value of one foreign currency in relation to another is defined by the exchange rate.

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