Macro & Economy
Inflation, growth, currency and monetary policy.
- AppreciationA rise in the market value of an asset over time, opposite of a price decline.
- Balance of PaymentsBoPThe full statistical record of a country's transactions with the rest of the world, covering trade, income, transfers, and capital flows.
- Basis PointbpOne hundredth of one percent; used to describe small moves in rates and yields.
- Bill of LadingB/LA transport document that acts as a receipt for shipped goods, evidence of the carriage contract, and often a title document needed to claim the cargo.
- Blended FinanceA structure that mixes concessional public or philanthropic money with commercial capital so riskier development projects can attract private investors.
- BondቦንድA loan to a government or company that pays interest and repays the principal on a set date.
- CommodityA basic raw material or farm product traded in bulk, such as coffee, gold, or oil.
- Compound InterestInterest calculated on both the original sum and on interest already added in earlier periods.
- Concessional LoanA loan offered on softer terms than the market, usually with below-market interest, long grace periods, or extended repayment horizons.
- CouponThe regular interest payment a bond issuer pays to holders, often stated as a yearly rate.
- Credit RatingAn independent score of how likely a borrower is to meet debt payments on time.
- CurrencyThe official money of a country, used to price goods, wages, and financial contracts.
- Current AccountThe balance-of-payments section covering trade, investment income, and transfers such as remittances with the rest of the world.
- DeflationA sustained fall in the general price level of goods and services across an economy.
- Development Finance InstitutionDFIA public or policy-backed lender that funds projects and firms for development goals, often where pure commercial banks will not go alone.
- Exchange Rateየምንዛሬ ተመንThe price of one currency in terms of another, for example, how many birr buy one US dollar.
- Fiscal PolicyGovernment decisions on taxing and spending that shape demand, deficits, and public debt.
- Fixed IncomeInvestments that pay scheduled interest, such as bonds and treasury bills, rather than ownership stakes.
- GDPGDPGross domestic product is the total market value of goods and services produced in a country over a set period.
- HedgeA hedge is a position or contract taken to reduce the risk of a loss on another investment or exposure.
- HyperinflationHyperinflation is extremely rapid, uncontrolled price rises that destroy the purchasing power of money very quickly.
- Import CoverA measure of how many months of imports a country can pay for using its foreign exchange reserves at the current import rate.
- Inflationየዋጋ ግሽበትThe rate at which prices rise over time, reducing what each unit of currency can buy.
- Interest Rateየወለድ ምጣኔThe cost of borrowing money, or the return paid on savings, expressed as a percentage.
- Multilateral LenderA financing institution owned by many countries that provides loans, grants, or guarantees for development, trade, or crisis support.
- Pre Shipment FinanceShort-term credit that funds raw materials, wages, or packaging after an export order is won but before the goods are shipped and paid for.
- Quantitative EasingQEA central bank policy of buying large amounts of assets to inject money into the financial system and lower longer-term rates.
- RecessionA broad, sustained decline in economic activity across the economy, not just one firm or sector.
- Risk PremiumThe extra return investors demand for holding a riskier asset instead of a safer one.
- Savings RateThe share of income you keep rather than spend, a simple gauge of how fast your financial buffer can grow.
- Sovereign Credit RatingAn opinion from a rating agency on a government's ability and willingness to meet its debt obligations on time and in full.
- Supply and DemandThe basic market forces of how much is offered for sale and how much buyers want, which together set prices.
- Systematic RiskMarket wide risk that affects many assets at once and cannot be removed by diversifying across ordinary stocks alone.
- TariffA schedule of taxes or charges on imports or exports, set by product category to raise revenue or protect local producers.
- Tax BaseThe amount or activity a tax law multiplies by a rate: income, sales, property value, or another defined measure.
- Time Value of MoneyTVMThe idea that money available now is worth more than the same amount later, because it can earn a return in the meantime.
- Trade DeficitA period when the value of a country's imports of goods (and often services) exceeds the value of its exports.
- Trade SurplusWhen a country exports more goods and services by value than it imports over a given period.
- Year on YearYoYA comparison of a figure with the same figure from twelve months earlier, used to show growth or decline.
- Yield CurveA graph of interest rates for bonds of the same credit quality across different maturities, from short term to long term.
- Yield to MaturityYTMThe annualised return you would earn on a bond if you bought it at today's price, received all coupons, and held it to maturity.
- Zero Coupon BondA bond sold below face value that pays no periodic interest and returns a single amount at maturity.