valuuttakori

A currency basket, or valuuttakori in Finnish, is a collection of currencies weighted according to certain criteria. It is used as a reference point to measure the value of another currency or to manage exchange rate policies. Central banks often use currency baskets to stabilize their own currency's value against a mix of major international currencies.

The composition and weighting of a currency basket are crucial. The weights can reflect the trading volume between countries, the relative sizes of their economies, or the importance of specific currencies in international trade and finance. For example, a country heavily reliant on trade with its neighbors might create a basket reflecting the currencies of those neighboring countries.

One of the primary purposes of a currency basket is to reduce volatility. By pegging or managing a currency against a basket rather than a single foreign currency, a country can smooth out fluctuations that might arise from the unpredictable movements of one particular currency. This provides greater predictability for businesses involved in international trade and investment.

The International Monetary Fund (IMF) uses a Special Drawing Right (SDR) as an example of a currency basket. The SDR is an international reserve asset whose value is based on a basket of five major global currencies: the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound. The weights are reviewed periodically to reflect changes in the global economic landscape. Using a basket can also influence monetary policy decisions by providing a clearer picture of a country's external economic position.