What is a Blended Rate?
Mixed currency terms refer to the hedging terms used to calculate or liquidate claims and debts based on the ratio between two or more currencies.
Mixed currency clause
Right!
- Chinese name
- Mixed currency clause
- Foreign name
- Mixed Currency Clause
- Definition
- Professional term
- Involved Disciplines
- economics
- Mixed currency terms refer to the hedging terms used to calculate or liquidate claims and debts based on the ratio between two or more currencies.
- The main forms of mixed currency clauses are: (1) stipulating that two or more currencies are proportionally used as the contract valuation currency and payment currency; (2) specifying a specific accounting unit as the standard for the valuation of contract claims and debts, pending liquidation, Converted into one or more currencies. At present, the common bookkeeping units mainly include special drawing rights and European currency units.
- The mixed currency clause is a value preservation measure that emerged and developed in the 1950s. Its value preservation effect is as follows: interconnecting several currencies and offsetting exchange rate fluctuations with each other to a certain extent, only when several currencies depreciate or simultaneously Only in the case of appreciation will the interests of one party be seriously harmed. It is precisely because the mixed currency clause can provide protection for both parties at the same time, eliminate or reduce exchange rate risks, so that the parties are more willing to accept. At present, international economic contracts have widely adopted mixed currency clauses, and they are used more and more widely.