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hot money

Syllabification: hot mon·ey

Definition of hot money in English:

noun

Capital that is frequently transferred between financial institutions in an attempt to maximize interest or capital gain.
Example sentences
  • Investors purchase shares on foreign stock markets or hold currency deposits at foreign banks, transferring large sums of hot money across frontiers as investor confidence or interest rates rise and fall.
  • At the same time, the spread of financial liberalization has exposed developing nations to the promise and perils of export strategies financed by hot money.
  • This editor firmly believes that exchange controls of some kind are often if not always useful for preventing hot money from destabilizing international financial markets.

Definition of hot money in:

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