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.