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General questions What does an interest rate differential?
avatar Mymelody
Question by: Samanthar - 23 May 2016, 08:57:51
What does an interest rate differential?
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Answer by: Joseph - 23 May 2016, 09:04:22

An interest rate differential is a difference in interest ratebetween two currencies in a pair. If one currency has an interest rate of 3 percent and the other has an interest rate of 1 percent, it has a 2 percent interest rate differential.

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