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 ?
Central banks intervened by issuing base currency, which was followed by non-conventional measures.
Investment in non-base currency securities will be hedged to the base currency of the funds.
Belize City, Belize, November 24, 2018 --( RoboForex, an international financial broker, is ready to launch accounts with Ethereum as a base currency. The traders will now be able to open accounts, deposit and withdraw ETH.
Select base currency and target currency from currencies (JPY/USD/EUR) on the platform.
"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.
It invests in Japanese equities in a way aimed at protecting against fluctuations between the base currency - US dollar - and the denomination of the investments.
Peter Hu, head of Investor Solutions for Asia ex-Japan, said, 'The fund will appeal to investors who have a strong view of the renminbi appreciating against their base currency and can be viewed as an alternate to renminbi deposits which offer very low yields.
BM&F Bovespa also linked with market centre operator Chi-X Global in June to launch Chi-FX Brazil, enabling foreign institutions to trade Brazilian equities in their own base currency.
Approximate USD values for a one (1) "pip" move per contract in most traded currency pairs are as follows, per 100,000 units of the base currency:
The Augmented Dicky Fuller Test tests the null hypothesis of a unit root, our results suggest that we cannot reject the null hypothesis of unit root in each series I (l) with the Japanese Yen and the US dollar as the base currency in the case of ADF statistic of Pakistan and four comparator countries.
Avotus allows users to enter and store conversion rates for several currencies against a base currency; users can then locally process and pay communications invoices in the local currency.

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