Inversion and Network for Greening the Financial System: Difference between pages

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1.
''Green finance - international initiatives.''


A term used in foreign exchange rate quotation.
(NGFS).


Abbreviation for the Network of Central Banks and Supervisors for greening the Financial System, established in 2017.


'''Example'''


Consider the historical FX quote:
The NGFS is established to:


GBP 1 = 1.4598 - 1.4602 USD.
*Help strengthen the global response required to meet the goals of the Paris Agreement.
 
*Enhance the role of the financial system to manage risks and to mobilise capital for green and low-carbon investments in the broader context of environmentally sustainable development.  
The base currency is GBP.
*Define and promote best practices to be implemented within and outside of the membership of the NGFS.
 
*Conduct or commission analytical work on green finance.
This is the currency there is a single unit of, to be exchanged for a variable number of USD.
 
 
The inversion of this FX quote means expressing the same price, but with the other currency as the base currency (USD here):
 
USD 1 = (1 / 1.4602) - (1 / 1.4598) GBP
 
USD 1 = 0.6848 - 0.6850 GBP.
 
 
In the inverted FX quote, USD is the currency there is a single unit of (to be exchanged for a variable number of GBP).
 
 
2.
 
In any market, the reversal of a normal - or commonly expected - relationship.
 
For example the situation of an Inverse yield curve, where longer maturities of funds are trading at LOWER yields than shorter-dated maturities (being the opposite of the normally expected upward-sloping relationship).




== See also ==
== See also ==
* [[Base currency]]
* [[Central bank]]
* [[Foreign exchange]]
* [[Climate risk]]
* [[Inverse quote]]
* [[ESG investment]]
* [[Inverse yield curve]]
* [[Global Sustainable Investment Alliance]]
* [[Governance]]
* [[Green finance]]
* [[Paris Agreement]]
* [[Supervisor]]
* [[Sustainable finance]]
* [[Sustainability]]
* [[Sustainability bond]]
* [[Sustainability linked loan]]


[[Category:The_business_context]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Financial_products_and_markets]]

Revision as of 15:15, 9 September 2020

Green finance - international initiatives.

(NGFS).

Abbreviation for the Network of Central Banks and Supervisors for greening the Financial System, established in 2017.


The NGFS is established to:

  • Help strengthen the global response required to meet the goals of the Paris Agreement.
  • Enhance the role of the financial system to manage risks and to mobilise capital for green and low-carbon investments in the broader context of environmentally sustainable development.
  • Define and promote best practices to be implemented within and outside of the membership of the NGFS.
  • Conduct or commission analytical work on green finance.


See also