Legal Dictionary

Search results for: “european currency”

  • Reporting Currency

    The currency in which the parent firm prepares its own financial statements; that is, U.S. dollars for a U.S. company….

  • Multicurrency Loans

    Give the borrower the possibility of drawing a loan in different currencies….

  • Multicurrency Clause

    Such a clause on a Euro loan permits the borrower to switch from one currency to another currency on a rollover date….

  • Hard Currency

    A freely convertible currency that is not expected to depreciate in value in the foreseeable future….

  • Functional Currency

    As defined by FASB No. 52, an affiliate’s functional currency is the currency of the primary economic environment in which the affiliate generates and expends cash….

  • Foreign Currency Translation

    The process of restating foreign currency accounts of subsidiaries into the reporting currency of the parent company in order to prepare consolidated financial statements….

  • Foreign Currency Option

    An option that conveys the right to buy or sell a specified amount of foreign currency at a specified price within a specified time period….

  • Eurocurrency Deposit

    A short-term fixed rate time deposit denominated in a currency other than the local currency (i.e. US$ deposited in a London bank)….

  • Dual-Currency Issues

    Eurobonds that pay coupon interest in one currency but pay the principal in a different currency….

  • Currency Risk Sharing

    An agreement by the parties to a transaction to share the currency risk associated with the transaction. The arrangement involves a customized hedge contract embedded in the underlying transaction….

  • Currency Selection

    Asset allocation in which the investor chooses among investments denominated in different currencies….

  • Currency Arbitrage

    Taking advantage of divergences in exchange rates in different money markets by buying a currency in one market and selling it in another market….

  • Currency Basket

    The value of a portfolio of specific amounts of individual currencies, used as the basis for setting the market value of another currency. It is also referred to as a currency cocktail….

  • Currency Future

    A financial future contract for the delivery of a specified foreign currency….

  • Currency Risk

    Related: Exchange rate risk…