International Currency Markets



best-known and most-traded cryptocurrency


final digital ledger for a cryptocurrency transaction after the transaction has been verified and blocked


form of electronic currency, such as Bitcoin, that is not issued by a central bank

currency appreciation

increase in value of one country's currency relative to another country's currency

currency exchange market

marketplace in which users can exchange, buy, and sell currency and can use derivatives to speculate on currency

currency exchange rate

relative ratio of the value of a foreign currency to that of a domestic currency

currency exchange rate risk

chance that the exchange rate between two currencies will change before a transaction is finalized

economic risk

danger that shifts in the economy will unfavorably affect the currency exchange ratio at the time of the transaction, resulting in real economic loss


point at which the supply of a currency meets the demand for that currency


currency used by the eurozone members of the European Union, a combination of European countries agreeing to one economic standard

eurozone member

one of the current member countries of the European Union that have agreed to use the euro as their currency

fiat money

note that a government establishes, and backs the value of, as a valid form of payment by law

foreign exchange market (Forex)

currency marketplace that is expressly used for trading currencies

gold standard

establishment of gold as the underlying asset for all currency minted in a country


continual increase in the average price levels of goods and services

international Fisher effect (IFE)

theory in economics stating that the expected disparity between two countries' exchange rates is the same as the difference in their interest rates

International Monetary Fund (IMF)

organization consisting of approximately 190 countries that makes loans to developing countries or organizations within those countries in order to combat poverty

international monetary system

set of rules agreed upon by countries internationally in order to set monetary standards for trade between countries

political risk

danger that shifts in government and political policies will unfavorably affect the currency exchange ratio at the time of the transaction

purchasing power parity (PPP)

economic theory that compares the relative ability of two different countries to purchase the same goods using their respective domestic currencies

spot exchange rate

price to trade one currency for another at any given point in time

World Bank

international organization, developed from the Bretton Woods agreement, devoted to providing financing and advice to developing nations