| foreign exchange | |
| —n | |
| 1. | the system by which one currency is converted into another, enabling international transactions to take place without the physical transportation of gold |
| 2. | foreign bills and currencies |
| a stew of meat, vegetables, potatoes, etc. |
| a chattering or flighty, light-headed person. |
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.)