Currency basket

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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.[1] 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.[2] Another example is the special drawing rights of the International Monetary Fund.

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References[edit]

  1. ^ "Currency Basket". Investopedia. Retrieved 18 September 2010. 
  2. ^ Kent, Penelope (2008). Law of the European Union. Pearson Education. p. 258. ISBN 978-1-4058-3526-8. Retrieved 19 September 2010.