Meaning of “interest arbitrage” in the English Dictionary


"interest arbitrage" in Business English

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interest arbitragenoun [ U ]

uk us also interest rate arbitrage FINANCE

a method of making a profit by buying currency in one place and selling it in another place, making use of the difference in interest rates in the two places:

A tax on international transactions was introduced to reduce possible gains from interest arbitrage and exchange-rate movements.

(Definition of “interest arbitrage” from the Cambridge Business English Dictionary © Cambridge University Press)