Thread: Currency Baskets

Currency baskets are collections of securities with a weighted average that can be utilized to calculate the current value of any given debt, duty, or written promise. Securities of this type may also be used to determine the current value of a currency that is different from the currency involved with the security under consideration. Generally, the use of a currency basket to evaluate the current value of a currency will involve considering several different currencies in order to obtain an average performance value over a broader scope.

Definitely Edinna,

Addition to that, a currency basket is commonly used in contracts as a way of avoiding (or minimizing) the risk of currency fluctuations.