foreign exchange

noun

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 in a Sentence

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

Recent Examples on the Web

South Sudan assumed control over most oil fields, stripping the al-Bashir administration of a large chunk of its revenue and foreign exchange. Mohammed Alamin And Mike Cohen | Bloomberg, Washington Post, "Why Protests Are Raging Against Sudan’s Leader," 6 Mar. 2019 According to a triennial survey conducted by the Bank for International Settlements, Hong Kong with $437 billion in FX transactions in 2016 was the second-largest foreign exchange market in Asia and the fourth largest in the world that year. Bill Campbell For Cnn Business Perspectives, CNN, "Ongoing unrest in Hong Kong risks dragging down the global economy," 6 Sep. 2019 Institutions will also require authorization to sell pesos on the foreign exchange market. BostonGlobe.com, "Deadline placed on loan claims for students defrauded by colleges," 2 Sep. 2019 Then along comes Stig, a Swedish foreign exchange student who's even taller. Sonja Haller, USA TODAY, "New Netflix for kids in September: 'Lord of the Rings' movies, 'Turbo,' new 'Dragons'," 30 Aug. 2019 Central Bank Chief Guido Sandleris said that following the sharp depreciation last week, the bank will continue to intervene in the foreign exchange market to stabilize the peso whenever it’s needed. Washington Post, "New Argentina treasury minister guarantees peso stability," 21 Aug. 2019 The Japanese game maker took a $110 million hit due to foreign exchange losses. Gavin J. Blair, The Hollywood Reporter, "Nintendo Profit Plunges 46 Percent Despite Higher Switch Sales," 30 July 2019 Previously, MoneyGram has used foreign exchange markets for settlements, which means the company routinely has to buy currencies ahead of time. Paul Vigna, WSJ, "Ripple to Invest Up to $50 Million in MoneyGram," 17 June 2019 Andres Begne, a foreign exchange student from Mexico, is quarterbacking the Kokomo High School Wildkats during this Fall's campaign. Kyle Neddenriep, Indianapolis Star, "Mexican foreign exchange student learned English from TV — and also how to play QB," 22 Aug. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'foreign exchange.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of foreign exchange

1691, in the meaning defined at sense 1

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Statistics for foreign exchange

Last Updated

29 Sep 2019

Look-up Popularity

Time Traveler for foreign exchange

The first known use of foreign exchange was in 1691

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More Definitions for foreign exchange

foreign exchange

noun

Financial Definition of foreign exchange

What It Is

Foreign Exchange (FOREX) refers to the foreign exchange market. It is the over-the-counter market in which the foreign currencies of the world are traded. It is considered the largest and most liquid market in the world.

How It Works

Foreign Exchange has no centralized market. Instead, a foreign exchange market exists wherever the trade of two foreign currencies are taking place. It is open 24 hours a day, five days a week. This foreign exchange market exists to ease investment and trade. The primary trading centers are London, Paris, New York, Tokyo, Zurich, Frankfurt, Sydney, and Singapore. All levels of traders, from central banks to speculators, trade currencies with one another.

Why It Matters

Without this mechanism in place, foreign trade and investment would be impeded. Since many currencies abound along with a few major players like the U.S. dollar, the British pound, and the euro, this apparatus provides a clearinghouse to trade those major currencies.

Source: Investing Answers

foreign exchange

noun

English Language Learners Definition of foreign exchange

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

More from Merriam-Webster on foreign exchange

Rhyming Dictionary: Words that rhyme with foreign exchange

Britannica.com: Encyclopedia article about foreign exchange

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