Currency basket

(redirected from Basket of Currencies)

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

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
However, the next move is already on going, which is to have a basket of currencies. The IMF is going into this direction, to have a basket of currencies which includes the Euro, Yen and Yuan.
If the dollar price is lower, other currencies yield higher profits whereas if banks review their basket of currencies at higher rates, they may get lower profits or losses.
The consortium will be managed externally and will seek to build trust among consumers by pegging the virtual coin to a basket of currencies including the dollar and euro, the Journal said.
He argues that LIbra is different from other cryptocurrencies because it is a "stablecoin," with a value pegged to a basket of currencies and other assets.
China will steadfastly deepen the market-oriented reform of its currency exchange rate, continue to improve the floating exchange rate system based on the market supply and demand and with reference to a basket of currencies, and work to keep the renminbi exchange rate basically stable, reasonable and balanced, Lu said.
Against a basket of currencies, the dollar index rose to 96.32, up 0.6 percent on the day, making dollar-denominated gold more expensive for investors of other currencies.
Investors are concerned about the economic impact of the longest government shutdown in US history, now in its 34th day, as the dollar index, which measures the performance of the greenback against a basket of currencies, fell 0.2 percent.
Karachi -- Saleem Parekh, President, SITE Association of Industry, Karachi, while commenting on the recent massive rupee devaluation by the Government of Pakistan, has said that in spite of the fact that we are in the free-fall basket of currencies, yet the currency is controlled by government through State Bank or directly through Finance Ministry.
The value of the SDR is determined by a basket of five major currencies, namely the US Dollar, the Euro, the Japanese Yen, and the British Sterling, as well as the Chinese Yuan, which has been included in the basket of currencies as of 1 October 2016.
Compared to its rich Gulf neighbours which peg their currencies to the US dollar and have little room for an independent monetary policy, Kuwait manages its dinar against an undisclosed basket of currencies in which the dollar plays a major role.
The local unit was traded higher against a basket of currencies.
Against a basket of currencies, the dollar was a shade lower at 89.56.