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CURRENCY LINKED BONDS

Statistics Directorate    
Definition:
A bond in which the coupon and/or redemption value are linked to the movement in an exchange rate. Examples of these types of bonds were the tesobonos issued by Mexican banks in 1994. These bonds, issued and payable in pesos, had a redemption value linked to the movement in the U.S. dollar/ Mexican peso exchange rate. When the Mexican peso depreciated, the redemption value increased.

Source Publication:
IMF, 2003, External Debt Statistics: Guide for Compilers and Users – Appendix 1. Special financial instruments and transactions: classifications, IMF, Washington DC.

Hyperlink:
http://www.imf.org/external/pubs/ft/eds/Eng/Guide/index.htm

Statistical Theme: Financial statistics

Created on Friday, August 29, 2003