Caused by an expected change in exchange rates. An expected increase in exchange rates may speed up transactions while an expected decrease may slow exchange rates.
Leads and Lags
Related Terms
-
The Quantity Theory of Credit is an economic theory that emphasizes the role of credit creation by banks in influencing the economy.
-
SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, is a messaging system that allows banks and other financial institutions to send and receive information about financial transactions. It is not a payment system, but rather a messaging system that facilitates payments. SWIFT has since become the standard for cross-border payments, connecting over 11,000 financial […]
-
Forward guidance is a tool used by a central bank to try and influence market expectations of future levels of interest rates. “Forward guidance” in monetary policy means providing some information...
-
The ISM manufacturing index, also known as the Purchasing Managers’ Index (PMI), monitors the health of U.S. manufacturers by surveying purchasing managers.
-
A central bank is an organization that manages the currency of a country or group of countries and controls the money supply. Central banks, also called reserve banks, came into being because their...