Aug 5, 2021 19:31
2 yrs ago
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Spanish term
Argentina
Multilingual Experts
Native in: English (Variants: Canadian, UK, US) 
Works in: English, Spanish to English, English to Spanish, and 12 more.
base primero
Spanish to English
Bus/Financial
Economics
This is from a layperson's text on the history of currency. Is the simple expression "as the basis of its currency" OK here?
Entre 1980 y 1990, Gran Bretaña abandonó la
referencia al dólar estadounidense para tomar
como base primero el marco alemán y luego unirse
al Mecanismo Europeo de Tasa de Cambio
Thanks
Entre 1980 y 1990, Gran Bretaña abandonó la
referencia al dólar estadounidense para tomar
como base primero el marco alemán y luego unirse
al Mecanismo Europeo de Tasa de Cambio
Thanks
Proposed translations
(English)
| 4 | base currency first |
Francois Boye
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| 4 -1 | and instead pegged the pound to |
Kristina Love
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Proposed translations
1 hr
Francois Boye
United States
United States
Specializes in field
United States
An economic geek with social skills
Native in: French
Works in: English to French, French to English, Spanish to English, and 1 more.
Related KudoZ points
:
60
Selected
base currency first
What is Base Currency?
In the forex market, currency unit prices are quoted as currency pairs. The base currency – also called the transaction currency - is the first currency appearing in a currency pair quotation, followed by the second part of the quotation, called the quote currency or the counter currency. For accounting purposes, a firm may use the base currency as the domestic currency or accounting currency to represent all profits and losses.
Source: Investopedia
https://www.summachar.in/42942-why-is-us-dollar-worlds-base-...
In the forex market, currency unit prices are quoted as currency pairs. The base currency – also called the transaction currency - is the first currency appearing in a currency pair quotation, followed by the second part of the quotation, called the quote currency or the counter currency. For accounting purposes, a firm may use the base currency as the domestic currency or accounting currency to represent all profits and losses.
Source: Investopedia
https://www.summachar.in/42942-why-is-us-dollar-worlds-base-...
Peer comment(s):
| disagree |
Kristina Love
: The term "base currency" as here explained relates to the market for trading currency pairs; this is not what the Asker's source text is about.
1 day 19 hrs
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The trading currency pairs reveal which currency is the reference/base and which currency is not
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| agree |
Luis M. Sosa
: Base currency or reference currency can be used no matter we describe trading in FX or foreign exchange rate policy.
3 days 18 hrs
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4 KudoZ points awarded for this answer.
Comment: "thanks"
-1
1 day 21 hrs
Kristina Love
United States
United States
Native in English
Works in field
United States
B.A. in Spanish, A.A. in Audio
Native in: English (Variant: US)
Works in: Spanish to English, Spanish, English, and 1 more.
and instead pegged the pound to
From https://www.investopedia.com/terms/c/currency-peg.asp
"What Is a Currency Peg?
A currency peg is a policy in which a national government sets a specific fixed exchange rate for its currency with a foreign currency or a basket of currencies. Pegging a currency stabilizes the exchange rate between countries. Doing so provides long-term predictability of exchange rates for business planning. However, a currency peg can be challenging to maintain and distort markets if it is too far removed from the natural market price."
The article found here is in English and explains the same events discussed in your source text (Thatcher pegged the pound to the German mark, then joined the European community's exchange rate mechanism): https://www.deseret.com/1990/10/6/18884503/britain-agrees-to...
Your suggestion "as the basis of" probably would make the meaning clear enough, but if you want the correct specific terminology, the passage is talking about a currency peg.
"Base currency" and even "basis" are used as terms in trading currency pairs (as investment), whereas your source passage has to do with governmental monetary policy.
Suggested translation of your passage:
Between 1980 and 1990, Great Britain delinked the pound from the U.S. dollar and instead pegged it to the German mark, before then tying it to the European Exchange Rate Mechanism.
("Delinked" is a term used to describe the removal of a currency peg. Plug "delinked currency" into a search engine to see.)
Reference:
https://www.deseret.com/1990/10/6/18884503/britain-agrees-to-peg-pound-to-the-german-mark
Peer comment(s):
| disagree |
Francois Boye
: What is the English for 'base' in Spanish? That's the question. //The economic definition of base currency does not need extra interpretation. Saying that all currencies are pegged to the dollar because the US dollar is a base currency is incorrect.
2 hrs
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I think she already knows that and has access to dictionaries. Just trying to provide context-relevant info. // I wasn't saying either of those things at all...see discussion.
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| neutral |
Luis M. Sosa
: Please see the comment to my agreement vote to Francois's take
1 day 23 hrs
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Luis, if you can provide reference for "base currency" used in the correct context for the Asker's question, please do. Can you say why you prefer it to "pegged to"? You could even submit "base currency" but w/correct explanation
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Discussion
This was provided in my explanation but it appears that no one read it or the article linked therein. Too late now.
But if you Google "base currency," the entire first page of search results are in the incorrect context (foreign exchange investment trading), and ditto the entire second page of search results. On the third page, you get mostly the same, with a couple referring to business/organization accounting and a couple other irrelevant ones, but none that describe anything relevant to the context of the Asker's question, which describes a currency peg.
But if you can find reinforcing support for the idea that "base currency" can be used in the correct context, I'd be happy to remove my "disagree" on Francois' s answer, but only if he adds as a note an appropriate/correct explanation. Or I would even add an agree with him or with anyone who enters "base currency" if they provide a correct and appropriate explanation. At this moment, Francois' explanation is incorrect, and although I have looked for correct support for his term, I have not found it. If someone else can find it, please do so!
My arguments have one goal is rejecting your translation.. A peg is necessary only and only if a trade position or market share needs to be protected.
ON the contrary, a base currency does not entail trade considerations.
I wasn't referring to this topic, but the U.S. dollar being the world's reserve currency (for the moment, till Bitcoin takes over) means that many countries hold large quantities of U.S. dollars in reserve. It doesn't necessarily mean that other countries peg their currency to it. Two sort of related but distinct concepts.
But the "base currency" and "transaction currency" in foreign currency trading (investment context - carried out by individuals, and nothing to do with governmental monetary policy) are a pair of any two currencies that are being exchanged. The base currency is the one being used to buy the other (the transaction currency.)
OK, I think this is as much as I can possibly contribute here so I'll leave it to others to discuss the ins and outs.
A currency is pegged to a base currency when the country represents is highly dependent from a trade point of view on the base currency's country.
The US dollar is a base currency because it is a reserve currency. This does not mean that the US is the dominant trade partner of all countries.