Commodity Block Currency(redirected from Commodity Block Currencies)
Commodity Block Currency
A currency with foreign exchange price movements that strongly correlate to the movements of a single commodity. This happens when the economy of the country issuing such a currency is largely tied to one commodity, or a few similar commodities. For example, Canada has more oil in its ground than any other country except Saudi Arabia. As a result, the Canadian dollar appreciates when oil prices are high and depreciates when they are low.