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Currency basket |
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Currency basketA group of two or more currencies that may be used as a unit of account, or to which another currency may be pegged.Currency basketThe 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 MatchesUnder-valued currencyUnder-valued currencyThe 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. EurocurrencyEurocurrencyA currency which is deposited in banks outside its country of origin. For example the eurodollar, eurodeutschmark and eurosterling. Convertible currencyConvertible currencyA 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 sharingCurrency risk sharingAn 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 currencyIntervention currencyA currency that is commonly used by central banks for exchange market intervention. See reserve currency. Further SuggestionsCurrency depreciationCurrency 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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