Dual Exchange Rate

A situation in which there is a fixed official exchange rate and an illegal market-determined parallel exchange rate. The different exchange rates are used in different situations, either in exchanges or evaluations, as mandated by the government.

Argentina adopted a dual exchange rate following its catastrophic economic troubles in the beginning of 2002. The illegal market-determined exchange rate would be preferred in a situation such as a cost-benefit analysis conducted on behalf of the Argentinian government.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Dual currency deposit — In finance, a dual currency deposit (DCD) is a derivative instrument which combines a money market deposit with a currency option to provide a higher yield than that available for a standard deposit. There is a higher risk than with the latter… …   Wikipedia

  • Dual Currency Issue — A bond that pays interest in one currency but pays the principal in a different currency. The amount of the principal repayment is set at initiation and paid at maturity. This principal amount usually allows for some appreciation in the exchange… …   Investment dictionary

  • Dual Currency Bond — A debt instrument in which the coupon and principal payments are made in two different currencies. The currency in which the bond is issued, which is called the base currency, will be the currency in which interest payments are made. The… …   Investment dictionary

  • Dual Currency Service — A forex trading service that allows an investor to speculate on exchange rate movement between two specific currencies through a fund or instrument. A dual currency service typically requires the investor to make directional speculations between… …   Investment dictionary

  • Dual Currency Bond —    A bond that pays a coupon in one currency, but is redeemed for a fixed amount of another currency, often the dollar. Investors usually get an above market coupon, but run the risk that, in this example, the dollar would fall below the exchange …   Financial and business terms

  • Dual Currency Deposit — A fixed deposit with variable terms for the currency of payment. Deposits are made in one currency, but withdrawals at maturity occur either in the currency of the initial deposit or in another agreed upon currency. This is a deposit that creates …   Investment dictionary

  • Dual-listed company — Dual listed companies should not be confused with cross listed companies, where the stock of one company is listed on more than one stock exchange. A dual listed company or DLC is a corporate structure in which two corporations function as a… …   Wikipedia

  • Rate of return — In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested.… …   Wikipedia

  • Dual diagnosis — This article is about co occurring mental disorder and substance abuse. For the general definition of any two diagnoses together, see Comorbidity. The term dual diagnosis is used to describe the comorbid condition of a person considered to be… …   Wikipedia

  • Dual Currency Swap — A currency swap used to hedge the risk associated with the issuance of a dual currency bond. A dual currency swap allows the bond issuer to repay the principal and coupon in the base currency or another currency. Exchange rates are preset in dual …   Investment dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.