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foreign exchange

foreign exchange

7 4.1
A way to change one country's money into another country's money
  • noun
  • /ˈfɔrɪn ɪksˈʧeɪndʒ/
  • Specialized
translation icon : cambio de divisas
  • At the time of independence, Ghana had a foreign exchange surplus of almost $500 million, mostly from cocoa exports.
  • foreign exchange reserves
  • foreign exchange earnings
  • foreign exchange market

They've also borrowed more foreign exchange than they hold.

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Examples

  • A global growth agenda and new foreign exchange rules are therefore essential.

    Academic text (2011)
  • They've also borrowed more foreign exchange than they hold.

  • You know, my school back in Sweden has a foreign exchange student program.

  • The foreign exchange market ceased all transactions after 5 minutes.

  • Typically, the controls are imposed to try to protect a government's limited stock of foreign exchange reserves.

    Academic text (1991)
  • The trade deficit has also widened, and foreign exchange reserves have dropped.

    Academic text (1992)
  • At the same time, foreign exchange reserves have risen from $57.4 billion in 2004 to almost $100 billion.

    Academic text (2008)
  • Beijing is also trying to slow the growth of its foreign exchange reserves by encouraging more capital outflows.

    Academic text (2008)
  • In 2011, China held the equivalent of $3.2 trillion in foreign exchange reserves—more than any other country.

    Academic text (2013)
  • The foreign exchange market allows traders to buy and sell different currencies around the world.

Synonyms

exchange
vsforeign exchange
106 3.5

Changing money from one currency to another

is the wider system supporting those conversions for international trade

How Active

fluctuating exchange rate
  • Specialized
5.3
foreign exchange
  • Specialized
7 4.1

Surface Forms

Morphology

foreign + exchange

The meaning is directly compositional: 'foreign' (from other countries) combined with 'exchange' (changing money) clearly denotes exchanging currencies or the system for doing so. This is a common, cross-linguistically transparent compound and a B1 learner who knows both constituents will readily infer the MWE's meaning.

Etymology

The noun foreign exchange comes from the simple picture of traders meeting to swap foreign coins and make an exchange of different countries' 'money'. So today foreign exchange means the market or system for changing one country's 'money' for another.