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Currency Swap
An agreement between two parties to exchange the principal amount and interest in two different currencies.
Spot Market
A market where financial instruments or commodities are traded for immediate delivery.
Expected Inflation
The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, as anticipated by consumers, investors, and economists.
Purchasing Power Parity
An economic theory that compares different countries' currencies through a "basket of goods" approach to determine relative currency values and exchange rates.
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