A currency basket is a portfolio of selected currencies with different weightings. A currency basket is commonly used to minimize the risk of currency fluctuations. An example of a currency basket is the European Currency Unit that was used by the European Community member states as the unit of account before being replaced by the euro. Another example is the special drawing rights of the International Monetary Fund.
- ^“Currency Basket”. Investopedia. Retrieved September 18, 2010.
- ^Kent, Penelope (2008). Law of the European Union. Pearson Education. p. 258. ISBN 978-1-4058-3526-8. Retrieved September 19, 2010.
Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder of TBIL.co STATX Fund.