Foreign Exchange - Definition - Law Dictionary Home Dictionary Definition foreign-exchange

Definition :

Foreign exchange, means foreign currency and includes--

(i) deposits, credits and balances payable in any foreign currency,

(ii) drafts, travellers cheques, letters of credit or bills of exchange, expressed or drawn in Indian currency but payable in any foreign currency,

(iii) drafts, travellers cheques, letters of credit or bills of exchange drawn by banks, institutions or persons outside India, but payable in Indian currency. [Foreign Exchange Management Act, 1999 (42 of 1999), s. 2 (n)]

The process of making international monetary trans-actions; esp. the conversion of one currency to that of a different country, Black's Law Dictionary, 7th Edn.