- The definition of a foreign exchange is the exchange of one currency for another by governments, businesses and residents in two different countries.
An example of foreign exchange is a U.S.-based company doing business with a company in Japan and paying them in U.S. currency.
foreign exchange definition by Webster's New World
- the transfer of credits to a foreign country to settle debts or accounts between residents of the home country and those of the foreign country
- foreign bills, currencies, etc. used to settle such accounts
foreign exchange definition by American Heritage Dictionary
- Transaction of international monetary business, as between governments or businesses of different countries.
- Negotiable bills drawn in one country to be paid in another country.
foreign exchange - Business Definition
- Foreign currency and financial instruments that can be used to make payments in foreign countries.
- The purchase or sale of foreign currencies.
foreign exchange - Computer Definition
foreign exchange - Cultural Definition
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.)
foreign exchange - Investment & Finance Definition
The value of one currency stated in terms of another currency. A person who exchanges one country’s money for currency issued by another country has acquired foreign exchange.