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FrançaisA guarantee issued by a bank, under which the beneficiary is only required to make a demand in order to receive payment. In contrast to the conditional guarantee – which require the beneficiary to provide proof of the principal´s default…
Read MoreDepreciation
In foreign exchange, the decline in value of one currency in relation to another currency.
Read MoreDevaluation
The reduction of a currency´s value in relation to other currencies. The exchange values of freely traded currencies are determined by market action. However, governments that interfere with market action can manipulate the value of their currency by fiat. Devaluation…
Read MoreDirect foreign investment
Investment that is made to acquire a lasting interest in a enterprise operating in an economy other than of the investor. In most countries, direct investment is defined for statistical purposes as the ownership or control, directly or indirectly, by…
Read MoreDirty float
A system in which exchange rates are partially determined by government intervention or restrictions to limit appreciation or depreciation of the country´s currency. See also clean float and floating exchange rate.
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