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Category

International finance

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tax haven
country or place with low taxes for foreign investors
letter of credit
document issued by a financial institution
reserve currency
foreign currency held by monetary authorities as part of forex reserves
financial center
city that is home to a large number of internationally significant banks, businesses, and stock exchanges
sovereign wealth fund
state-owned investment fund
middle income trap
economic development situation of a country that attains a certain income and gets stuck at that level
global financial system
overview about the global financial system
cashless society
society in which financial transactions are not conducted with physical banknotes or coins but instead with digital information
eurobond
International bond denominated in a non-native currency
Eurodollar
Eurodollars are U.S. dollars held in time deposit accounts in banks outside the United States. The term was originally applied to U.S. dollar accounts held in banks situated in Europe, but it expanded over the years to cover U.S. dollar accounts held anywhere outside the U.S. Thus, a U.S. dollar-denominated deposit in Dubai or Singapore would likewise be deemed a Eurodollar deposit (sometimes an Asiadollar). More generally, the euro- prefix can be used to indicate any currency held in a country where it is not the official currency, broadly termed "eurocurrency", for example, Euroyen or even E
currency crisis
situation in which grave doubt exists as to whether a central bank has enough forex reserves to maintain an exchange rate, often with a speculative attack in forex markets
world currency
a currency that is widely used internationally
international finance
financial services between nations
foreign exchange risk
a financial risk that exists when a financial transaction is denominated in a currency other than the domestic currency
international monetary systems
internationally agreed rules, conventions and supporting institutions that facilitate international trade
forfaiting
In trade finance, forfaiting is a service providing medium-term financial support for export/import of capital goods. The third party providing the support is termed the forfaiter. The forfaiter provides medium-term finance to, and will commonly also take on certain risks from, the importer; and takes on all risk from the exporter, in return for a margin. Payment may be by negotiable instrument, enabling the forfaiter to lay off some risks. Like factoring, forfaiting involves sale of financial assets from the seller's receivables. Key differences are that forfaiting supports the buyer (importe
interest rate parity
equilibrium state for interest rates in two countries/currencies
Hot money
economic term
petrodollar recycling
international spending or investment of a country's revenues from petroleum exports
Financial contagion
scenario in which financial shocks spread to other financial sectors
Illicit financial flows
form of illegal capital flight
Financial Action Task Force blacklist
blacklist of non-cooperating countries created by the Financial Action Task Force
equity home bias puzzle
term given to describe the fact that individuals and institutions in most countries hold only modest amounts of foreign equity
Feldstein–Horioka puzzle
Problem in financial theory
benchmark price
guideline price for international trade
triangular arbitrage
forex arbitrage across three currencies
Managed float regime
term from the banking sector
Lottery Bond
Government bond that pays prizes instead of interest
trade finance
strategies to facilitate international trade
Saving-investment balance
balance of national savings and investments
European Union tax haven blacklist
European Commission tool against tax avoidance
International Fisher effect
financial economics
Covered interest arbitrage
foreign exchange market