hot money


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hot money

n.
Money that is moved by its owner quickly from one form of investment to another, as to take advantage of changing international exchange rates or gain high short-term returns on investments.

hot money

n
(Banking & Finance) capital transferred from one financial centre to another seeking the highest interest rates or the best opportunity for short-term gain, esp from changes in exchange rates

hot′ mon′ey


n.
Informal.
funds transferred frequently or hastily from one country to another chiefly to avoid depreciation in value or to take advantage of higher interest rates.
[1925–30]
Translations
capitaux flottants
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References in periodicals archive ?
The BSP said the hot money outflows "may be attributed to profit taking as well as investor reaction to news of possible rate increases by the US Federal Reserve due to an expected surge in inflation amidst implementation of the US government's tax cuts.
Unlike FDIs which are more difficult to repatriate, hot money comes and go like a hurricane, leaving in its wake a battered currency and worse economy.
11 million in net portfolio investments had already been withdrawn from the domestic financial system, this being the difference between gross hot money inflows of $2.
Foreign portfolio investments or hot money recorded an overall net outflow of $205.
Economic Daily News: Hot money influx expected to start stock market boom
Money experts expect that a large share of hot money will exit the EGX by the end of 2016, to be replaced by either foreign funds for medium- and long-term investments, or the entry of local investors.
Oman's capital market would have to live with hot money that flows into its markets, as there is no mechanism to distinguish the type of money, he added.
As interest rates climb, we will see hot money coming into the country, strengthening the pound.
Interestingly, since relatively high interest rates are relatively more available in developing countries, hot money has become the key financier of authoritarian regimes.
Simply put, exchange rate movements cannot correct net trade (saving) imbalances between open economies, but they can increase hot money flows.
At the same time, the BSP will continue to cast a watchful eye towards hot money flows, and may yet decide to implement further macroprudential measures in order to minimise risks stemming from US monetary policy-related external volatility.
For Turkey I guess this should be taken as a warning for Basci et al, that they have to reduce the current account deficit, narrow the external financing requirement and reduce dependency on hot money inflows - if they don't then when tapering actually comes they will be brutally exposed.