Commodity Currency
a.k.a. Commodity dollars, Commodity bloc
The currency of a country that earns much of its income exporting raw materials, so it tends to move with commodity prices.
A commodity currency belongs to an economy that lives off what it digs up, pumps or grows. The Australian dollar tracks metals, the Canadian dollar and Norwegian krone track oil, the New Zealand dollar tracks dairy.
When those prices rise, more foreign money flows in to pay for exports, and the currency tends to firm. The link is real but loose: interest rates and the global risk mood can override it for long stretches. See comdoll.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.