Dollar drain

A dollar drain is the effect of exhausting a country's currency reserve because of trade imbalance. If a country imports more than it exports, the result is a drain of its local currency because it will be used to buy the currency of the country it is importing goods with.

Stocks | Forex | Options | Economics | Bonds | History | Language learning | Technology | Technical Analysis | Fundamental Analysis
Copyright © 2014 econtrader | Risk disclosure | Terms of Use