Foreign Exchange Transaction
/ˈfɔrən ɪksˌʧeɪnʤ trænˈzækʃən/
Definitions
- (n.) A financial agreement involving the exchange of one currency for another, typically governed by legal and regulatory frameworks.
The corporation entered into a foreign exchange transaction to hedge against currency risk.
Forms
- foreign exchange transaction
- foreign exchange transactions
Related terms
See also
Commentary
In legal drafting, specify the parties, currencies involved, and settlement terms clearly to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.