Foreign exchange, namely international exchange, is one of the most basic concepts of international finance. Dynamic foreign exchange refers to the practice or process of converting one country's currency into another country's currency to pay off international creditor's rights and debts. In this sense, foreign exchange and international settlement are the same. Static foreign exchange refers to the means and tools to pay off the relationship between creditor's rights and debts in international exchange activities.

Foreign exchange rate is the exchange rate at which one country's currency is converted into another country's currency, that is, the conversion rate between two different currencies. The pricing methods of exchange rate include direct quotation method, indirect pricing method and dollar pricing method.