Exchange Stabilization Fund - ESF

AAA

DEFINITION of 'Exchange Stabilization Fund - ESF'

Money available to the U.S. Treasury Department primarily used for participating in the foreign-exchange market in an attempt to maintain currency stability. It holds U.S. dollars, foreign currencies and special drawing rights.

INVESTOPEDIA EXPLAINS 'Exchange Stabilization Fund - ESF'

The ESF allows the U.S. government to intervene in the forex market to influence exchange rates, usually the domain of the central bank, without affecting the domestic money supply. This money is also used to provide financing to foreign countries.

RELATED TERMS
  1. Exchange Rate

    The price of a nation’s currency in terms of another currency. ...
  2. Special Drawing Rights - SDR

    An international type of monetary reserve currency, created by ...
  3. Central Bank

    The entity responsible for overseeing the monetary system for ...
  4. Currency

    A generally accepted form of money, including coins and paper ...
  5. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
  6. U.S. Treasury

    Created in 1798, the United States Department of the Treasury ...
Related Articles
  1. The Federal Reserve
    Economics

    The Federal Reserve

  2. What Are Central Banks?
    Personal Finance

    What Are Central Banks?

  3. What Is Money?
    Economics

    What Is Money?

  4. India Is Eclipsing China's Economy As ...
    Economics

    India Is Eclipsing China's Economy As ...

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center