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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)
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