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Currency Board |
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Currency boardAn extreme form of pegged exchange rate in which management of both the exchange rate and the money supply are taken away from the central bank and given to an agency with instructions to back every unit of circulating domestic currency with a specified amount of foreign currency. Operates similar to the gold standard.Currency BoardEntity charged with maintaining the value of a local currency with respect to some other specified currency.Currency Board Similar MatchesBase currencyBase currencyApplies mainly to international equities. Currency in which gains or losses from operating an international portfolio are measured. Currency swapCurrency swapAn 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 Exchange RiskCurrency Exchange RiskUncertainty about the rate at which revenues or costs denominated in one currency can be converted into another currency. Currency riskCurrency riskUncertainty about the future value of a currency. Currency areaCurrency areaA 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 selectionCurrency future Blocked currency Currency appreciation Optimal currency area Common currency Currency overvaluation currency conversion Currency factor Hard currency Currency call option Reserve currency Artificial currency currency loan Foreign currency mortgage Vehicle currency Currency union currency Currency crisis Foreign currency option Virtual currency option Eurocurrency deposit Over-valued currency Reserve currency Currency speculation |
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