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Optimal currency area |
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Optimal currency areaThe optimal grouping of regions or countries within which exchange rates should be held fixed. First defined (as "optimum currency areas") by Mundell (1961).Similar MatchesBlocked currencyBlocked currencyA currency that is not freely convertible to other currencies due to exchange controls. Currency 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). 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 put optionCurrency put optionContract that gives the holder the right to sell a particular currency at a specified price (exchange rate) within a specified period of time. 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. Further SuggestionsCurrency overvaluationCurrency risk currency loan Reporting currency Composite currency Currency basket Over-valued currency Soft currency Currency factor Currency future Net currency exposure Currency risk Currency Eurocurrency Currency appreciation Currency selection Currency no longer issued currency eurocurrency Multicurrency loans Under-valued currency Eurocurrency deposit Currency reallignment Currency swings Intervention currency |
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