Base currency


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Base currency

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

Base Currency

In foreign exchange, the first currency listed in a currency pair. Normally, it is either the domestic currency or the dominant forex currency. Firms dealing in multiple currencies calculate all profits and losses in the base currency.

The base currency is assigned the value of 1 when calculating exchange rates. For example, if one is calculating the exchange rate of the U.S. dollar to the British pound and the pound is the base currency, it is expressed as GBPUSD and read as "dollars per one pound." See also: quote currency.
References in periodicals archive ?
As Dubai real estate prices continue to trend lower, investors whose base currency has not been in the US dollar are still enjoying healthy returns," the report is quoted as saying.
This means that on maturity, the bank is given the right to repay the client s principal and interest earned in either the base currency or the alternate currency.
This means that on maturity, the bank is given the right to repay the client's principal and interest earned in either the base currency or the alternate currency.
10 (10,000 base currency units) on the Metatrader 4 (MT4).
Through this platform, trading transactions are normally carried out by either acquiring a loan against base currency or simply converting the currency.
Since the mainland bonds are denominated in renminbi (yuan), by investing in the fund investors can benefit from the potential appreciation of the renminbi against the Hong Kong dollar, the base currency of the fund,' Hang Seng reportedly said.
The local expenses are converted into the base currency for organization-wide analysis, planning and management.
Features include an ability for clients to view transactions in their base currency and a live chat facility that enables clients to have direct contact with their ANZ trader during trading.
BASDA says that a utility to enable users to convert their accountancy base currency to the euro will be available before 2002, when it becomes compulsory for companies in the euro zone to account in the new currency.
Other and more marginal criteria adjustments include clarification on how Fitch treats MMFs' direct and collateralized exposures to a fund's sponsor or parent, which is mostly relevant for European MMFs, more detailed guidelines on investments denominated in a currency other than that of the fund's base currency and related currency hedging, as well as guidelines on the fund's custodian bank.
It uses a base currency of AUD to assess currency risk for local investors.
All trades and positions are calculated in the base currency.

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