A collection account is a specialized bank account designed to minimize bank float for remittances, typically from foreign customers. This article explores its historical context, key events, applicability, and more.
Convertibility refers to the ability to change domestic currency into foreign currency. A currency is considered convertible if its holders can freely exchange it without requiring permission from authorities.
A Monetary Authority That Maintains a Fixed Exchange Rate with a Foreign Currency
Comprehensive overview of foreign currency, its types, historical context, importance, applicability, and more.
A mechanism whereby an exchange rate can be calculated between two currencies for which no direct rate of exchange exists, using a third common currency like the US dollar.
Foreign Currency-Denominated Borrowing involves acquiring debt in a currency other than the debtor's national currency, often to evade domestic inflation risks and potentially lower borrowing costs.
Foreign currency reserves held by a central bank to back liabilities and influence monetary policy.
An import deposit is a requirement for an advance blocked deposit with the central bank for obtaining foreign currency for imports, functioning as both a tax and a money supply control mechanism.
The Net-Investment Method, often referred to as the Closing-Rate Method, is a technique used in finance and accounting for consolidating foreign subsidiaries. This method emphasizes the significance of using closing rates for translating foreign financial statements.
Telegraphic Transfer (TT) is a method of transmitting money overseas by electronic transfer between banks. The transfer is typically made in the currency of the payee and credited to their account at a specified bank or paid in cash upon application and identification.
Transfer Credit Risk represents the risk of a foreign debtor's inability to obtain necessary foreign currency from the central bank despite willingness and ability to pay, often affecting long-term contracts. This article explores the various dimensions and management strategies related to transfer credit risk.
Comprehensive guide to the process of expressing amounts denominated in one currency in terms of a second currency using the exchange rate between the currencies. Detailed considerations of assets, liabilities, and income statement items.
An in-depth look at monetary reserves, including government's foreign currency and precious metals stockpile, and Federal Reserve Board's bank requirements.
A comprehensive guide to understanding Leads and Lags in foreign currency transactions, their examples, associated risks, and strategic application.
