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18. Jun
2012
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Currency Basket is a selected group of currencies in which the weighted average is used as a measure of the value or the amount of an obligation. These functions as a benchmark for regional currency movements, its composition & weighting depends on its purpose.
It is commonly used in contracts as a way of avoiding or minimizing the risk of currency fluctuations. The European currency unit which was replaced by the euro & the Asian currency unit are examples of currency baskets.
