Inward Arbitrage


SUBMITTED BY: L319A

DATE: Sept. 28, 2016, 7:59 p.m.

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  1. Inward Arbitrage
  2. A form of arbitrage involving rearranging a bank's cash by borrowing
  3. from the interbank market, and re-depositing the borrowed money
  4. locally at a higher interest rate. The bank will make money on the
  5. spread between the interest rate on the local currency, and the interest
  6. rate on the borrowed currency.

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