Comments on: what kind of currency is foreign direct investment using? http://www.myylt.com/2010/03/08/what-kind-of-currency-is-foreign-direct-investment-using/ Discussion of Forex Trading and Currency Trading Thu, 24 May 2012 01:11:46 +0000 http://wordpress.org/?v=2.3.3 By: JaCe http://www.myylt.com/2010/03/08/what-kind-of-currency-is-foreign-direct-investment-using/#comment-23022 JaCe Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2010/03/08/what-kind-of-currency-is-foreign-direct-investment-using/#comment-23022 Foreign direct investment typically takes the form of the target country's currency. In your example, this would be currency B. Look at it this way, what currency are the assets for sale typically denominated in? There are of course exceptions such as homogeneous commodities which have standardised pricing in a particular currency with all other quoted prices merely spot conversions at market rates, but for the most part when people talk about FDI, it boosts the value of the domestic currency in which the assets are usually denominated in. Foreign direct investment typically takes the form of the target country’s currency. In your example, this would be currency B.

Look at it this way, what currency are the assets for sale typically denominated in?

There are of course exceptions such as homogeneous commodities which have standardised pricing in a particular currency with all other quoted prices merely spot conversions at market rates, but for the most part when people talk about FDI, it boosts the value of the domestic currency in which the assets are usually denominated in.

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