Currency basket

Currency basket

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 Basket

A portfolio of several currencies with different weightings. For example, one may construct a currency basket with 40% euros, 35% U.S. dollars, and 25% British pounds; the percentages determine the basket's value. Using a currency basket is a common way to peg a currency without overexposing it to the fluctuations of a single currency. For example, Kuwait shifted the peg of the Kuwaiti dinar to a currency basket from the U.S. dollar in 2007 because the dollar was weak at the time, resulting in high inflation.
References in periodicals archive ?
The dollar hit a one-week high versus a currency basket thanks in part to a buoyant two-year Treasury note yield, which hit a nine-year high as traders awaited the release of the Fed minutes.
More central banks around the world have revealed that they are to add the Chinese yuan as part of their reserve currency basket.
The month of April 2017 saw the Central Bank resuming gold holdings after eight years during which the banks' reserves were confined to a foreign currency basket, primarily US Dollar in addition to a portfolio of selected currencies, reported Emirates news agency Wam.
The International Monetary Fund (IMF) determined the renminbi to be a freely usable currency in its five-yearly review of the Special Drawing Right (SDR) Currency Basket in 2015.
The Suez Canal Authority is considering adding the Chinese yuan currency within the approved currency basket to collect transit fees, after the International Monetary Fund (IMF) added the currency to the Special Drawing Rights (SDR).
958 against a currency basket on Monday, was flat at 94.
Jeddah, April 19 (SUNA) - Jeddah City is due to host on next Friday and Saturday the 9th indicative forum for gold and oil markets, global currency basket on Friday, with participation of 15 Saudi, Gulf and international lecturers.
Bloomberg) -- The Philippines will consider a proposal from banks to establish a direct peso-yuan exchange facility in anticipation of increased use of the Chinese currency following its inclusion in the International Monetary Fund's reserve currency basket.
The International Monetary Fund on Monday, as expected, admitted China's yuan into its benchmark currency basket in a victory for Beijing's campaign for recognition as a global economic power.
The International Monetary Fund should put off any move to add the yuan to its benchmark currency basket until after September 2016, IMF staff said in a report which showed a mixed performance of the renminbi on meeting key financial norms.
That means a stable currency basket which we monitor monthly and make changes only where it absolutely necessary.
The Central Bank of the Russian Federation canceled the corridor of the currency basket, as well as regular interventions at the boundaries of the corridor and beyond them, an official statement from the Bank said, TASS reports.