|
|
Currency swings |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Currency swingsThese 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.Currency swings Similar MatchesCurrency hedgeCurrency hedgeApplies mainly to international equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks). Currency revaluationCurrency revaluationA deliberate upward adjustment in the official exchange rate established, or pegged, by government against a specified standard, such as another currency or gold. Currency depreciationCurrency depreciationA decline in the value of one currency relative to another currency. Depreciation occurs when, because of a change in exchange rates, a unit of one currency buys fewer units of another currency. Currency call optionCurrency call optionContract that gives the holder the right to purchase a specific currency at a specified price (exchange rate) within a specific period of time. Currency crisisCurrency crisisThe crisis that occurs when particpants in an exchange market come to percieve that an attempt to maintain a pegged exchange rate is about to fail, causing speculation against the peg that hastens the failure and forces a devaluation. Further SuggestionsEuropean Currency Unit (ECU)Reserve currency Currency area Composite currency currency Currency risk Currency devaluation currency loan Currency board Foreign currency translation Eurocurrency deposit Currency overvaluation Currency risk sharing Currency speculation Currency in circulation Foreign currency mortgage Currency in circulation Currency risk Currency swap Currency arbitrage Over-valued currency Foreign currency option Multicurrency clause Currency option Eurocurrency |
|
|
|