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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
- Account Options - Fixed or variable spreads, minimum deposits, lot sizes, base currencies, account types, funding options.
They have pursued every avenue to attract traders, through increased leverage options between 1:1 to 1:600 and expanding client account choices to 6 base currencies, free of commissions and account fees.
Multiple base currencies chosen with specific needs in mind may help offset losses
Some people may have multiple base currencies ?depending on what use they plan to put their money to.
The fund has daily liquidity and is available in the base currencies of: EUR, GBP, HKD, SGD and USD.
The variables are Real per capita GDP, Trade Balance, Terms of Trade, Volume of Trade and Bilateral Real Exchange Rates with the US dollar and the Japan Yen as base currencies.
Estimates of the speed of adjustment "[beta]" with Japanese Yen and US Dollar as the base currencies, [alpha] is the intercept of the equation ...
The only country the standard deviation of whose exchange rate (using both Yen and US dollar as the base currencies) is higher than that of Pakistan is Sri Lanka.
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.
publishes the results of this analysis and examines the overall excess returns achieved by active currency overlay managers against benchmark, across different styles, hedge ratios and base currencies. The results of this survey have now been published for the quarter ending 30 June 2011.
Knowing what your base currencies are, it would be advisable to open different currency accounts in your bank if it is offering such accounts.

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