Voir iotafinance en FrançaisYou are viewing the English version of iotafinance.comIotafinance auf Deutsch sehen
Icon for the finance glossary section

Currency drain - Financial definition

Tags: 

Concise definition of the term currency drain

Currency drain is a mechanism by which a disequilibrium in the settlement of claims between banks in favour of one bank causes the other bank's cash reserves to decrease and may bring it into financial difficulties.

Comprehensive definition of the term currency drain

A currency drain can have similar effects as a bank run would have.

Browse the financial glossary in alphabetical order