Currency basket

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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 ?
Five ETNs on currency baskets from the ETF Securities product offering have been tradable on Xetra since Monday.
FTSE, the global index provider, and Curex Group, a developer of intellectual property and technologies that link institutional foreign exchange with global capital markets, have gone into partnership to launch the FTSE Curex FX Index Series - a new range of independently calculated, 24/5 streaming, executable spot FX benchmark FIX for currency pairs and currency baskets.
Tripoli, June 1 (ANI): Goldman Sachs had reportedly offered Libyan officials a huge chunk of the firm's shares after it lost its investments in bank trades and currency baskets, it has emerged.
Although equation 1 should be appropriate for estimating the currency baskets, it is also subject to possible drawbacks, which have been ignored in the previous literature.
Banks and other financial institutions do provide some private specialized currency baskets, but these are of limited use.
The WDX Institute is also a research body and will further academic research about World Currency Baskets and their application; in particular the idea of a World Currency Unit.
There is a large literature on the structure of the East Asian currency baskets.
The UAE appealed last week for Saudi Arabia and its neighbours to swap their dollar pegs for currency baskets.
In November, Suweidi had called for Gulf Arab states to sever their dollar links and start tracking currency baskets including the euro to fight inflation.
NEW YORK -- FTSE, the award winning global index provider, and Curex Group, a leading developer of intellectual property and technologies that link institutional foreign exchange with global capital markets, today announced their worldwide partnership and the launch of the FTSE Curex FX Index Series - a new range of independently calculated, 24/5 streaming, executable spot FX benchmark FIX for currency pairs and currency baskets.
The UAE called last month for all Gulf oil producers to switch from fixed exchange rates to currency baskets.
But some investment banks, including Standard Chartered and Deutsche Bank, expect the UAE and Qatar will sever their dollar pegs and start tracking currency baskets as early as this year.