Foreign Exchange (Noun)
Meaning
The system by which one currency is exchanged for another; enables international transactions to take place.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company specializes in providing foreign exchange services to international travelers and businesses.
- A country's foreign exchange reserves play a crucial role in maintaining the stability of its currency.
- To conduct business globally, companies must navigate complex foreign exchange regulations and fluctuations in currency value.
- The growth of the global economy has increased the importance of foreign exchange in facilitating international trade.
- Central banks often intervene in the foreign exchange market to manage their currency's value and prevent economic instability.