Hot_money Hot_money

Hot money - Definition and Overview

Related Words: Affluent, Assets, Balance, Banknotes, Bills, Blunt, Brass, Bread, Bucks, Budget, Bundle, Cabbage, Capital, Cash, Change, Chink, Chips, Coin

Hot money is used in economics to refer to funds which flow into a country to take advantage of a favourable interest rate, and therefore obtain higher returns. They influence the balance of payments and strengthen the exchange rate of the recipient country while weakening the currency of the country losing the money. These funds are highly volatile and will be shifted to another foreign-exchange market when relative interest rates make the moe profitable. It is money held in currency markets by speculators.

See also

arbitrage

Example Usage of money

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lola_sin: ALLIE AND RYAN SLUMBER PARTY! we haven't been working all day to raise money for raves and drugs though so it probably won't be as fun...
Sherreas: Making money online made simple by google....can be done for free.....http://bit.ly/GSnatch3
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