Cryptocurrency
Currency Peg
Currency Peg
A currency peg, also known as a fixed exchange rate, is a monetary policy in which a country’s currency is tied or pegged to the value of another currency, a basket of currencies, or a commodity. This means that the exchange rate between the pegged currency and the anchor currency remains fixed at a predetermined […]
Currency Exchange Controls
Currency Exchange Controls refer to the regulations and policies implemented by a government to control and regulate the exchange of its currency with foreign currencies. These controls can take various forms and are typically used to manage the flow of capital, stabilize exchange rates, and protect the country’s economy. Here are some key aspects […]
Currency Devaluation
Currency devaluation refers to the deliberate reduction in the value of a country’s currency relative to other currencies. This can be done by the country’s central bank or government through various policy measures. Here are some key points about currency devaluation: Purpose: Currency devaluation is often used as an economic policy tool to […]
Central Bank Intervention
Central Bank Intervention refers to the actions taken by central banks to influence the foreign exchange market and the value of their currency. These interventions are typically aimed at achieving specific objectives such as maintaining exchange rate stability, managing inflation, supporting economic growth, or addressing financial market disruptions. Here are some key points about […]
Central Bank Digital Currency (CBDC)
Central Bank Digital Currency (CBDC) refers to a digital form of a country’s official currency that is issued and regulated by the central bank. It is a digital representation of traditional fiat currency, such as the US dollar or the euro, but in a digital format. CBDCs are designed to leverage the benefits of […]
Basis Point
A basis point (BP) is a unit of measurement used in financial markets to express small changes in interest rates, bond yields, and other financial indicators. It is equivalent to one-hundredth of a percentage point or 0.01%. Basis points are commonly used in finance to represent the relative difference between two interest rates or […]
Base Rate
In forex, the term “Base Rate” refers to the benchmark interest rate set by a central bank. Central banks use interest rates as a tool to implement monetary policies, and these rates are a crucial factor that can influence the value of a country’s currency. The Base Rate is often referred to as the […]
Bank Run
A bank run is a situation where a large number of depositors withdraw their money from a bank simultaneously, usually due to concerns about the bank’s solvency or stability. It is characterized by a rapid and massive withdrawal of funds by the public or the bank’s customers. This can create a panic and lead to […]
Austerity
Austerity refers to a set of economic policies implemented by governments to reduce budget deficits and control public debt by cutting public spending and increasing taxes. It is often adopted during periods of economic downturn, financial crisis, or high levels of government debt. The main objective of austerity measures is to restore fiscal discipline […]
Asset Purchase Programme (APP)
The Asset Purchase Program (APP) is a monetary policy tool used by central banks to stimulate the economy and maintain price stability. It involves the purchase of various types of assets, such as government bonds, corporate bonds, and other securities, by the central bank. The primary objective of the APP is to inject liquidity […]
