| Webster's Online Dictionary |
| Expressions | Definition | ||
| Hot money | 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 this more profitable. It is money held in currency markets by speculators as opposed to national banks or domestic investors. (references) | ||
Source: compiled by the editor from various references; see credits. | Top | ||
| Expressions | Domain | Definition | |
| Hot money | Finance | 1: This term usually refers to short-term movements of money capital between countries. Source: European Union. (references) | |
| 2: Money transferred by the owner into another country under the violation of capital export restrictions or exchange controls, usually to take advantage of more favorable rates of return in the country of destination. Source: European Union. (references) | |||
| Hot money | Public Administration | Unused money market facilities which have become inactive because of an economic depression. Source: European Union. (references) | |
Source: compiled by the editor from various references; see credits. | Top | ||
