Currency risk sharing

 

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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.



Currency risk sharing

Similar Matches

Currency overvaluation

Currency overvaluation

Applies mainly to international equities: (1) consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total private supply (i.e., central banks are buying up the difference, supporting the value of the currency through foreign exchange intervention); (2) currency value exceeding purchasing power parity.


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.


Currency basket

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 depreciation

Currency depreciation

See depreciation.


Currency swings

Currency swings

These affect foreign currency mortgages. In pound sterling terms, the value of the capital outstanding on your mortgage can rise or fall dramatically if there is movement in the value of either the currency of the loan or UK pounds sterling. If the value of the pound increases, you should benefit from lower repayments, as the value of the foreign currency you have borrowed decreases. Less sterling is required to buy the same amount of foreign currency necessary to meet the repayments and vice versa.


Further Suggestions

Currency in circulation
Comptroller of the Currency
Currency board
Artificial currency
Currency swap
European Currency Unit (ECU)
Foreign currency option
currency
eurocurrency
Currency depreciation
Currency speculation
Net currency exposure
Virtual currency option
Eurocurrency market
Currency selection
Optimal currency area
Intervention currency
Currency no longer issued
Reserve currency
Foreign currency translation
Multicurrency loans
Currency Board
Over-valued currency
Currency in circulation
Reserve currency


 
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