baskursforhold

Baskursforhold is a Norwegian term used in finance and economics to describe the relationship between a base exchange rate (baskurs) and other rates, prices, or values within a contract, pricing model, or accounting practice. The word combines baskurs, the chosen reference or anchor rate, with forhold, meaning relation or ratio.

In practice, a baskursforhold defines how movements in the base rate affect other quantities. It may be a fixed multiplier, a ratio between the baskurs and another rate, or a formula linked to price indices or currency baskets. The concept is often applied in contexts where payments, invoices, or financial values are adjusted for currency fluctuations or other rate changes.

Applications include invoicing in multiple currencies, budgeting and financial planning, pricing adjustments in supply contracts, and financial reporting. For example, a company may specify a baskursforhold in an international contract to convert payments from a foreign currency to domestic currency while controlling how changes in the base rate pass through to the price.

Limitations include the context-specific and non-standardized nature of baskursforhold. Since the exact definition and mechanics can vary between contracts and industries, it is essential that the relationship be clearly defined in the relevant agreement to avoid ambiguity or disputes, especially during periods of high volatility.

See also: Exchange rate, Pricing adjustments, Currency clause, Hedging.