Currency basket


 

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Currency basket

A group of two or more currencies that may be used as a unit of account, or to which another currency may be pegged.

Currency basket

The value of a portfolio of specific amounts of individual currencies, used as the basis for setting the market value of another currency. It is also referred to as a currency cocktail.



Currency basket

Similar Matches

Under-valued currency

Under-valued currency

The situation of a currency whose value on the exchange market is lower than is believed to be sustainable. This may be due to a pegged or managed rate that is below the market-clearing rate, or, under a floating rate, it may be due to speculative capital outflows. Contrasts with over-valued currency.


Eurocurrency

Eurocurrency

A currency which is deposited in banks outside its country of origin. For example the eurodollar, eurodeutschmark and eurosterling.


Convertible currency

Convertible currency

A currency that can legally be exchanged for another or for gold. In times of crisis, governments sometimes restrict such exchange, giving rise to black market exchange rates.


Currency risk sharing

Currency risk sharing

An agreement by the parties to a transaction to share the currency risk associated with the transaction. The arrangement involves a customized hedge contract embedded in the underlying transaction.


Intervention currency

Intervention currency

A currency that is commonly used by central banks for exchange market intervention. See reserve currency.


Further Suggestions

Currency depreciation
Currency factor
Canonical model of currency crises
Currency union
Currency option
Multicurrency loans
Strong Currency
Currency in circulation
Currency hedge
Currency reserves
Currency call option
Currency
Base currency
Artificial currency
Currency speculation
Currency in circulation
Currency no longer issued
Currency revaluation
Currency swap
Currency bloc
Reserve currency
Currency swings
Foreign currency mortgage
Currency area
Eurocurrency deposit


 
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