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Investments glossary

Uncovered Interest Rate Parity – UIP


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Quotes of the day:

(The drugs) cause a reduction in the parasite so when the mosquito bites the person it doesn\'t transmit the disease.

— Neeraj Mistry

Uncovered interest rate parity (UIP) theory states that the difference in interest rates between two countries will equal the relative change in currency foreign exchange rates over the same period. It is one form of interest rate parity (IRP) used alongside covered interest rate parity.


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