The Currency Experts Archive

A forward contract or alternatively a ‘forward’ is a contract between two parties for the purchase or sale of an asset or product at a future date, decided upon today. The price agreed upon is called a delivery price which is equal to the forward price agreed upon when the contract is signed. The party [...]

Currency appreciation is the increase in value of one currency compared to another. Currencies increase in value against each other for several economic reasons. The state of the country’s finances and number of trading strength are the key factors. As a Currency appreciates it becomes more expensive to buy exports from the country in question. [...]

Reserve currency is a term used to describe a foreign currency that is kept in significant quantities by many governments and financial institutions as a part of their foreign exchange reserves. The reserve currency allows the issuing country to purchase goods at a lower rate than other nations. Reserve currencies are also used for globally [...]

Pegging a currency is a method of stabilizing a countries currency by fixing its exchange rate to that of another country, often during times of financial or economic turmoil. The main reason the method is implemented is to maintain stability, and to create a safer area for foreign investment. The peg allows the investor to [...]

The ECB otherwise known as the European central bank is the bank responsible for setting the monetary policy for the members of the Eurozone. It aims to maintain the price stability of the single currency. To do this the ECB sets the interest rate for the Euro as a single currency needs one set interest [...]

Economic data is vital for a country or organisation to keep track of the economy on both a local and global scale. Due to the complicated nature of modern economics, data is necessary to be able to manage and monitor all aspects of it. The data itself can come in many different forms. Monthly updates [...]

GDP stands for gross domestic product and is the market value of all officially recognized final goods and services produced in a country over a set period of time. It can be determined in a number of ways, all of which should come to the same result. The main ones are the income approach, expenditure [...]

Towards the end of 2011 the European central bank implemented the LTRO. In effect it is a cheap loan scheme for European banks to try and limit the Eurozone crisis. With the Eurozone crisis getting worse, many banks have become unstable with less money to lend to. The LTRO’s main objective is to boost those [...]