foreign exchange definition
Full Definition of FOREIGN EXCHANGE. 1. : a process of settling accounts or debts between persons residing in different countries.2. : foreign currency or current short-term credit instruments payable in such currency. See foreign exchange defined for English-language learners. a process of settling accounts or debts between persons residing in different countries. 2. : foreign currency or current short-term credit instruments payable in such currency. See foreign exchange defined for English-language learners.