Foreign Exchange Equalization Account

Foreign Exchange Equalization Account

the section of a country's CENTRAL BANK (for example the Bank of England) which uses the country's foreign currency holdings to operate in the FOREIGN EXCHANGE MARKET in order to stabilize the country's currency EXCHANGE RATE.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

Foreign Exchange Equalization Account

FOREIGN CURRENCIES held by a country's CENTRAL BANK (for example, the Bank of England) that are used to intervene in the FOREIGN EXCHANGE MARKET in order to stabilize the EXCHANGE RATE of that country's currency. See FIXED EXCHANGE RATE SYSTEM, EUROPEAN MONETARY SYSTEM, INTERNATIONAL MONETARY FUND.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005