Base currencyApplies mainly to international equities. Currency in which gains or losses from operating an international portfolio are measured.
Soft currencySoft currency
A money of a country that is expected to drop in value relative to other currencies.
Currency swapCurrency swap
An arrangement in which two parties exchange a series of cashflows in one currency for a series of cashflows in another currency, at agreed intervals over an agreed period.Companies would do this where they have existing borrowings in a currency which they want to convert into a borrowing in another currency. If its borrowing is at a fixed rate, and it is exchanging for another fixed rate borrowing, the swap is a 'fixed rate currency swap'.Unlike an interest rate swap, a currency swap usually does involve an exchange of the principal borrowed amount as well as the interest payments.
Currency crisisCurrency crisis
The crisis that occurs when particpants in an exchange market come to percieve that an attempt to maintain a pegged exchange rate is about to fail, causing speculation against the peg that hastens the failure and forces a devaluation.
Foreign currency futures contractForeign currency futures contract
Standardized and easily transferable obligation between two parties to exchange currencies at a specified rate during a specified delivery month; standardized contract on specified underlying currencies, in multiples of standard amounts. Purchased and traded on a regulated exchange on which margins are posted.
Currency areaCurrency area
A group of countries that share a common currency. Originally defined by Mundell (1961) as a group that have fixed exchange rates among their national currencies.
Further SuggestionsCurrency overvaluation
Currency Exchange Risk
Net currency exposure
Optimal currency area
Canonical model of currency crises
Currency put option
Currency in circulation
Currency futures contract
European Currency Unit (ECU)