Currency Board


 

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Currency board

An 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 Board

Entity charged with maintaining the value of a local currency with respect to some other specified currency.



Currency Board

Similar Matches

Base currency

Base currency

Applies mainly to international equities. Currency in which gains or losses from operating an international portfolio are measured.


Currency swap

Currency 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 Exchange Risk

Currency Exchange Risk

Uncertainty about the rate at which revenues or costs denominated in one currency can be converted into another currency.


Currency risk

Currency risk

Uncertainty about the future value of a currency.


Currency area

Currency 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 Suggestions

Currency selection
Currency 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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