interest arbitrage - definition in the Business English Dictionary - Cambridge Dictionaries Online

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English definition of “interest arbitrage”

interest arbitrage

noun [U]
 
 
( 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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