释义 |
Currency overvaluation Currency overvaluationApplies mainly to international equities: (1) consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total private supply (i.e., central banks are buying up the difference, supporting the value of the currency through foreign exchange intervention); (2) currency value exceeding purchasing power parity.Currency OvervaluationA situation in which the exchange rate of a currency exceeds what the open market is willing to pay. For example, currency overvaluation may occur when central banks buy more of a currency that they ordinarily do when other trading is flat. Currency overvaluation makes a country's exports more expensive and may thus be detrimental to international trade. |