Related Words

Currency: Any form of money that is in public circulation

Reserve Currency: A foreign currency held by a central bank or monetary authority for the purposes of exchange intervention and the settlement of intergovernmental claims.

Reporting Currency: The currency in which the parent firm prepares its own financial statements; that is, U.S. dollars for a U.S. company.

Currency Basket: Taking advantage of divergences in exchange rates in different money markets by buying a currency in one market and selling it in another market.

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

Artificial Currency: A currency substitute, e.g., special drawing rights (SDRs).

Functional Currency: Money that can be used to invest in risky investments with high potential return.

Xenocurrency: Xenocurrency is currency that trades outside of its own borders.

Currency Future: The value of a portfolio of specific amounts of individual currencies, used as the basis for setting the market value of another currency. It is also referred to as a currency cocktail.

Currency Hedge: A financial future contract for the delivery of a specified foreign currency.