Currency basket

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 ?
Also, under such a new framework, the international reserve currency basket would help to provide stability to the international trading community because the overall value of such a currency basket would not be the sole charge of any one nation.
The dollar scaled 16-month highs against a currency basket on the back of further strong US economic data, heading for its biggest monthly winning streak in more than three years.
With the exception of Kuwait, whose currency is pegged to a currency basket in which the dollar plays an overwhelming role, all other GCC economies have had their currencies pegged to the dollar for several decades, given their long-standing reliance on oil for exports and fiscal revenues
The dirham is traded in a currency basket in which the euro has a weight of 60 per cent and the dollar 40 per cent.
More central banks around the world have revealed that they are to add the Chinese yuan as part of their reserve currency basket.
The month of April 2017 saw the Central Bank resuming gold holdings after eight years during which the banks' reserves were confined to a foreign currency basket, primarily US Dollar in addition to a portfolio of selected currencies, reported Emirates news agency Wam.
The International Monetary Fund (IMF) determined the renminbi to be a freely usable currency in its five-yearly review of the Special Drawing Right (SDR) Currency Basket in 2015.
The Suez Canal Authority is considering adding the Chinese yuan currency within the approved currency basket to collect transit fees, after the International Monetary Fund (IMF) added the currency to the Special Drawing Rights (SDR).
The dollar, having hit a five-day high of 94.958 against a currency basket on Monday, was flat at 94.533 late in the day.
LONDON: Gold fell to a four-week low on Tuesday as hawkish comments from US Federal Reserve officials in the previous session sent the dollar to a two-month high against a currency basket. Silver was down 0.6 percent at $16.31 an ounce, after earlier hitting a five-week low of $16.19, while platinum was down 0.3 percent at $1,005.20 per ounce, off a four-week low of $997.79.
The yen composes nearly 15 percent of the currency basket.
Jeddah, April 19 (SUNA) - Jeddah City is due to host on next Friday and Saturday the 9th indicative forum for gold and oil markets, global currency basket on Friday, with participation of 15 Saudi, Gulf and international lecturers.