Bridge currency and Countertrade: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Create page - source - BIS - https://www.bis.org/publ/othp61.pdf)
 
imported>Doug Williamson
(Layout.)
 
Line 1: Line 1:
''Foreign exchange transactions.''
''International trade''. 


A bridge currency is a currency that is used as an intermediate step in an exchange
An arrangement whereby export sales to a less developed foreign country are made conditional on accepting imports of comparable value from the same country.
between two currencies for which:


*There is no foreign exchange rate readily available; or
The simplest form of countertrade arrangement is barter.
*The foreign exchange rate is unfavourable.
 
 
The United States dollar (USD) is often used as a bridge currency.




== See also ==
== See also ==
* [[Base currency]]
* [[Trade]]
* [[Cross currency deal]]
* [[Cross rates]]
* [[Currency]]
* [[Dollar]]
* [[Fixed currency]]
* [[Foreign currency]]
* [[Foreign currency exchange rate]]
* [[Foreign exchange]]
* [[Quoted currency]]
* [[Reference currency]]
* [[Reserve currency]]
* [[Terms currency]]
* [[Transaction]]
* [[Underlying currency]]
* [[USD]]
* [[Variable currency]]
 
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 12:15, 13 May 2016

International trade.

An arrangement whereby export sales to a less developed foreign country are made conditional on accepting imports of comparable value from the same country.

The simplest form of countertrade arrangement is barter.


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Bridge_currency&oldid=12236’