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 ?
Multiple base currencies chosen with specific needs in mind may help offset losses
The fund has daily liquidity and is available in the base currencies of: EUR, GBP, HKD, SGD and USD.
These currencies are commonly categorized as home currencies, base currencies and a reporting currency.
To cope, financial systems will need to be able to process several valid interchangeable base currencies and transaction currencies.
One of the world's largest currency managers, SSgA today manages more than CAD$83 billion in global currency portfolios (as of September 30, 2005) in all major base currencies.
This means that the person in the example has three base currencies.
One of the world's largest currency managers, SSgA today manages more than US$65 billion in global currency portfolios (as of 30th June 2005) in all major base currencies.
One of the world's largest currency managers, SSgA today manages more than GBP 36 billion in global currency portfolios (as of 31st March 2005) in all major base currencies.
They are available in different share classes to accommodate investors with different base currencies and are available in unleveraged and leveraged classes.
Both have investment objectives seeking to achieve total returns in excess of 3-month LIBOR in their respective base currencies, after fees and expenses.
Most systems, even those based on a client/server architecture, impose a limit of one or two base currencies per business unit.
PeopleSoft 6 introduces the concept of support for an unlimited number of base currencies, through the multibook feature in PeopleSoft General Ledger.