International Economic Terms

English-language economic definitions generated from approved international institutional sources.

  • fixed rate bond

    A fixed-rate bond promises interest payments calculated at a rate established when it is issued. That rate remains unchanged until maturity, although the bond may later …

  • fixed rate instrument

    A fixed-rate instrument pays interest at a rate set when it is issued and held constant until maturity or the end of its contractual term. The …

  • fixed rate tender

    A fixed-rate tender is a central-bank liquidity operation conducted at a rate set beforehand. Participating counterparties submit bids stating the volume of funds they wish to …

  • flow (transactions)

    In national and financial accounts, transaction flows record economic activity that occurs during a given period. They capture operations affecting goods, services, labour, capital or financial …

  • foreign currency holding

    A foreign-currency holding measures an entity’s net exposure to one specified currency. It is calculated by subtracting liabilities in that currency from the corresponding claims. Each …

  • foreign exchange forward

    A foreign-exchange forward fixes an exchange rate today for a currency transaction that will be settled on a later date. One party will then deliver a …

  • foreign exchange operations

    Foreign exchange operations cover transactions that change the currency in which funds are denominated. In the Eurosystem, the term is used for dealings involving a foreign …

  • foreign exchange revaluation

    Foreign exchange revaluation isolates valuation changes caused by exchange-rate movements from the transactions recorded in financial flows. It applies when assets or liabilities denominated in a …

  • foreign exchange settlement risk (cross-currency settlement risk)

    Foreign exchange settlement risk arises when the two payment legs of a currency trade are completed at different times or through separate systems. A party may …

  • forward rate agreement (FRA)

    A forward rate agreement (FRA) is an interest-rate derivative used to determine the cost of borrowing or the return on lending for a future period. The …