foreign exchange

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Thân thiện
Definition

Noun: 1. The system or market for converting one national currency into another: This refers to the global decentralized marketplace where currencies are traded. It determines the relative value (exchange rate) between different currencies. 2. The act or process of exchanging the currency of one country for that of another: This can refer to a specific transaction, such as when a traveler or business converts money.

Usage Examples
  • Noun (System/Market):
    • Fluctuations in the foreign exchange market can impact international trade.
    • The company hedges its risks in the foreign exchange market.
  • Noun (Specific Transaction/Activity):
    • I need to arrange foreign exchange for my trip to Japan.
    • The bank charges a fee for foreign exchange services.
Advanced Usage
  • "Foreign exchange reserves": Holdings of foreign currencies and gold by a central bank or monetary authority.
    • The country's central bank used its foreign exchange reserves to stabilize the national currency.
  • "Foreign exchange risk" (or currency risk): The risk of financial loss due to changes in exchange rates.
    • Exporters manage foreign exchange risk through forward contracts.
Variants and Related Words
  • Forex / FX: Common abbreviations for "foreign exchange," especially in financial trading contexts.
    • He trades currencies on the Forex market.
  • Exchange rate: The specific price at which one currency can be exchanged for another.
    • The exchange rate between the euro and the dollar is favorable.
  • Currency exchange: A near-synonym, often used for physical transactions (e.g., at a bank or airport bureau de change).
Synonyms
  • Currency exchange
  • Forex trading (specifically for the trading activity)
  • International currency market
Related Phrases
  • Foreign exchange student: A student who studies abroad in a different country through an exchange program.
    • She was a foreign exchange student from Germany.
  • Foreign exchange controls: Government-imposed restrictions on the purchase or sale of foreign currencies.
    • The government lifted its foreign exchange controls to encourage investment.
Noun
  1. the system by which one currency is exchanged for another; enables international transactions to take place