Meaning of the word "foreign exchange" in English

What does "foreign exchange" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

foreign exchange

US /ˈfɔːrɪn ɪksˈtʃeɪndʒ/
UK /ˈfɒrɪn ɪksˈtʃeɪndʒ/

Noun

1.

the money of other countries

Example:
We need to exchange our dollars for foreign exchange before traveling to Europe.
The bank offers competitive rates for foreign exchange.
2.

the system by which the currency of one country is exchanged for that of another

Example:
The global foreign exchange market operates 24 hours a day.
Understanding the principles of foreign exchange is crucial for international trade.