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.
First Known Use of foreign exchange
Financial Definition of FOREIGN EXCHANGE
What It Is
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.
FOREIGN EXCHANGE Defined for English Language Learners
Definition of foreign exchange for English Language Learners
: the process by which people in different countries pay each other by exchanging different types of money
: money from foreign countries
Seen and Heard
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