A marketplace characterized by a high volume of transactions for a security, commodity, or currency, featuring narrow bid-offer spreads and the ability to handle sizable transactions without significant price movement.
The euro (€) is the currency unit of the European Union's eurozone, divided into 100 cents, and used by numerous EU member countries for trade and financial transactions.
A foreign exchange rate is the price of a nation's currency in units of another currency, indicating how much one currency is worth in terms of another.
An economic equilibrium that exhibits an equality of expected real interest rates among countries when there are no restrictions on international trade, credit, and currency exchanges.
Inconvertible money is a type of currency that cannot be exchanged for precious metals or other commodities that generally serve as backing for money. Examples include Federal Reserve notes in the United States.
The International Monetary Fund (IMF) is an international organization established in 1944 to promote global monetary cooperation, ensure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Repatriation involves the movement of financial assets or profits of an organization or individual from a foreign country back to their home country, often for investment or distribution purposes.
The spot rate is the current market price at which a particular currency can be bought or sold for immediate delivery, typically within two business days.
Transfer credit risk refers to the risk faced by a creditor, often in long-term contracts, due to a foreign debtor's inability to obtain foreign currency from the central bank despite being able and willing to pay. It is an aspect of international credit exposure.
Translation exposure, also known as accounting exposure, is a type of financial risk that results from the translation of an entity's assets and liabilities from one currency to another.
