over-valued currency


The situation of a currency whose value on the exchange market is higher than is believed to be sustainable. This may be due to a pegged or managed rate that is above the market-clearing rate, or, under afloating rate, it may be due to speculative capital inflows. Contrasts with under-valued currency.

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You should try to make sure that you get rid of any over-valued currency while you can still get something for it.

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My brother has shorted the Euro through his hedge fund because he believes recent developments in France show that it is an over-valued currency.

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When the Swiss central bank abandoned the Swiss franc's cap to the euro, its price soared so high from panic trading in the first day that it briefly became an over-valued currency before the market corrected.

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