ulkomaanvaluuttamääräinen

Ulkomaanvaluuttamääräinen is a Finnish term that translates to "denominated in foreign currency" or "foreign currency denominated." It refers to a financial instrument, contract, or transaction whose value is expressed or settled in a currency other than the domestic currency of the parties involved.

For example, a loan agreement could be ulkomaanvaluuttamääräinen if the principal amount, interest payments, and repayment schedule are all specified in a currency like the US dollar or the Euro, even if the borrower and lender are both Finnish entities. Similarly, investments in international stocks or bonds are typically ulkomaanvaluuttamääräinen.

The primary reason for using foreign currency denominations is often to manage or hedge against currency risk, to access international capital markets, or to take advantage of potentially more favorable interest rates or investment opportunities available in other countries. However, it also introduces currency exchange rate fluctuations as a significant factor that can impact the real value of the obligation or investment for the parties involved. Parties to an ulkomaanvaluuttamääräinen arrangement must be aware of and monitor exchange rate movements.