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Home > QFINANCE Dictionary > Definition of currency mismatching

Definition of

currency mismatching

Currency & Exchange

depositing low-interest loan in country with high-interest the practice of borrowing money in the currency of a country where interest rates are low and depositing it in the currency of a country with higher interest rates. The potential profit from the interest rate margin may be offset by changes in the exchange rates, which increase the value of the loan in the company's balance sheet.

Definitions of ’currency mismatching’ and meaning of ’currency mismatching’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’currency mismatching’ and other financial terms with our online QFINANCE Financial Dictionary.

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