Glossary

a promise to pay the creditor when the drawee of a usance or time bill of exchange writes the words “accepted” above their name and signature across a bill

sales for which a firm has not yet been paid

payment to a seller before goods are shipped

an option that the holder can exercise at any time up to and including the exercise date

a record of all monetary transactions between a country and the rest of the world

the difference between the monetary value of exports and imports in an economy over a certain period of time

statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time

a financial institution set up by one individual country to finance development projects in a developing country and its emerging market

the strategic use of public finance in combination with private finance and philanthropy to support sustainable development in developing countries

an option that gives the owner the right, but not the obligation, to buy the asset at a specified price on some future date

the principal monetary authority of a country or monetary union; it normally regulates the supply of money, issues currency, and controls interest rates

purchases or sales of foreign currency intended to manage the exchange rate

the change in the Government of Canada's foreign currency balances.

public finance that promotes multilateral efforts to combat climate change through the UN Framework Convention on Climate Change (UNFCCC)

the risk of non-payment and non-performance in trade transactions

the ability of one supplier to produce a good or service at lower opportunity cost than other suppliers

specifies the responsibility of confirming bank and makes them liable to pay in case the issuing bank fails to pay

a national currency that can be freely exchanged for a different national currency at the prevailing exchange rate

an addition to certain accounts

a reduction (increase) in the international value of the domestic currency

a policy in which a national government or central bank sets a fixed exchange rate for its currency with a foreign currency or a basket of currencies and stabilizes the exchange rate between countries

a record of trade in goods, services, and transfer payments

a sum of money taken out of an account

the partial or total writing down of debt owed by individuals, corporations, or nations

a security that derives its value from another asset

a financial transaction in which an exporter's (seller's) bank presents documents to an importer's (buyer's) bank to facilitate payment

a legal document issued by an importer’s (or buyer’s) bank which promises to pay a specified amount of money when the bank receives documents from an exporter (or seller) about the shipment

the risk that a change in exchange rates will impact the number of customers a business has or its sales

determined when supply is equal to demand in the foreign exchange market

an option that the holder can exercise only on the expiration date

the price of one currency in terms of another currency

the policy choice that determines how foreign exchange markets operate

choosing to purchase or sell the asset underlying a held option according to the terms of the option contract

a financial transaction in which a business sells its accounts receivable at a discount to a third party, known as a factor

the percentage of the amount of receivables being factored which goes to the factor

the record of capital transfers and the purchases and sales of real and financial assets

any company or firm involved in the financial system and the regulatory agencies and organizations that oversee the financial system

the process in which financial institutions act as intermediaries between suppliers and demanders of funds

an agreement that gives the owner the right, but not the obligation, to purchase or sell an asset at a specified price on some future date

a set of institutions (such insurance companies and banks) and policies (such as regulations and laws) that allow economic transactions to occur

an exchange rate set by government policy that does not change as a result of changes in market conditions

the purchasing of at least ten percent ownership in a firm in another country or the starting of a new enterprise in a foreign country

the changing of currency from one country for currency from another country

the market in which people or firms use one currency to purchase another currency

a method of financing in which an exporter sells accounts receivables to a third party through bills of exchange, promissory notes, drafts drawn under usance (time), letters of credit in exchange for immediate cash

a contractual agreement between two parties to exchange a specified amount of assets on a specified future date

a rate specified today for the sale of currency on a future date

a standardized contract to trade an asset on some future date at a price locked in today

a system composed of financial institutions and regulators that act on an international level

the trend in which buying and selling in markets have increasingly crossed national borders, especially by large companies engaging in business in multiple countries

financing of projects and iniativies that support the environment and society by reducing pollution or tackling climate change

measure of the size of total production of goods and services in an economy in a single year

taking an action to reduce exposure to a risk

a general and ongoing rise in price levels in an economy

the percentage of an amount of money charged for its use per some period of time (often a year)

the total value of foreign assets held by domestic residents minus the total value of domestic assets held by foreigners

an international organization that promotes global economic growth, financial stability, international trade, and poverty reduction

an institution, usually a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse.

the ease with which a security or other asset can be converted into cash without affecting its value or market price

the behaviour of a country’s output, jobs, and prices in response or comparison to changing world conditions

an institution created by a group of countries that provides financing and professional advising for the purpose of development

a government’s plan for national climate actions, including climate-related targets, policies, and measures, as per the Paris Agreement

when a company offsets the risk that something will decrease in value by having a company activity that would increase in value at the same time

when a financial document is freely and unconditionally transferable from one person to another

the difference between the monetary value of exports and imports

a risk that importers will not pay as per contract terms

a risk that sellers will not perfomed as agreed upon in contract

foreign currency held by a government and managed by the central bank

transfers of funds by the importer to the account of the exporter once goods have been delivered

formal agreement among 196 UN member states to address causes of climate change, adopted at the 2015 COP 21 conference in Paris, France

when a financial institution aims to align its business, portfolios, and strategy with Paris Agreement objective of net-zero emissions by 2050

defining terms of payment i.e. deciding how and when of payment

when very small differences in expected returns cause very large international flows of funds

the price a buyer of an option pays for the option contract

an option that gives the owner the right, but not the obligation, to sell the underlying asset at a specified price on some future date

the percentage change in the value of an asset over some period

a guarantee that funds allocated for a particular purpose will not be spent on anything else

the potential for some type of loss or negative conquence

all the parties who participate in trade finance

the price an option holder pays for the underlying asset when exercising the option

when financial systems, services, and products consider environmental, social, and governance criteria in business and investment decisions

an agreement between two parties to exchange something, such as their obligations to make specified payment streams

the risk that the value of a business’s expected receipts or expenses will change as a result of a change in currency exchange rates

the risk that a change in exchange rates will impact the value of items on a company’s financial statements

the percentage of the working population in a country who would like to be working but are currently unemployed

the difference between current assets and current liabilities

an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects

an international organization that seeks to negotiate reductions in barriers to trade and to adjudicate complaints about violations of international trade policy; successor to the General Agreement on Tariffs and Trade (GATT)