foreign exchange

noun

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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
In foreign exchange markets the U.S. dollar maintained its current downward trajectory, while the euro strengthened. Jim Edwards, Fortune, 1 July 2025 Around half of global trade and almost 90 percent of global foreign exchange transactions are conducted in U.S. dollars, an extraordinary repository of value that affords Washington the luxury of deficit spending that would be outrageous anywhere else. Kori Schake, Foreign Affairs, 24 June 2025 Although the shift is more pronounced in Asia, the world has also been cutting its reliance on the greenback, with the share of the dollar in global foreign exchange reserves declining from over 70% in 2000 to 57.8% in 2024. Lee Ying Shan, CNBC, 11 June 2025 The company announced a 5 percent jump in dividends in April but is still likely to be impacted by steep hikes in foreign exchange rates ordered by Trump. Ashleigh Fields, The Hill, 5 June 2025 See All Example Sentences for foreign exchange

Word History

First Known Use

1623, in the meaning defined at sense 1

Time Traveler
The first known use of foreign exchange was in 1623

Browse Nearby Words

Cite this Entry

“Foreign exchange.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/foreign%20exchange. Accessed 7 Jul. 2025.

More from Merriam-Webster on foreign exchange

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!