The difference in the interest rate linked to two different currencies of two countries. For example, if an investor trades in dollars and saves in a US bank earning a 10% interest, but happens to take out a loan from a UK bank dominated in pounds for an interest of 7%, then the investor can cash in on the net interest rate differential of 3% profit by placing the loan taken from a UK bank into his US bank account.

Related information about net interest rate differential:

Related information about net interest rate differential:

**Net Interest Rate Differential Definition | Investopedia**

In international markets, the difference in the interest rates of two distinct economic regions. If a trader is long the NZD/USD pair, he or she owns the New ...

**Net Interest Rate Differential Definition & Example | InvestingAnswers**

We explain the definition of Net Interest Rate Differential, provide a clear example of how it works and explain why it's an important concept in business, finance ...

**What is net interest rate differential? definition and meaning**

Definition of net interest rate differential: The difference in the interest rate linked to two different currencies of two countries. For example, if an investor trades in ...

**What is net interest spread? definition and meaning**

net interest spread. net interest rate differential · net internal rate of return (net IRR). Definition. The difference between the average interest a bank receives on ...

**FXGlossary - FXPedia**

Jan 17, 2011 ... Net Interest Rate Differential : The difference in the interest rates associated with two currencies. Net Position : Currency positions that have not ...

**interest rate differential**

Net Interest Rate Differential — In international markets, the difference in the interest rates of two distinct economic regions. If a trader is long the NZD/USD pair, ...

**Glossary Navigation Pane**

Net Interest Rate Differential. The difference in the interest rates associated with two currencies. Net Position. Currency positions that have not been offset with ...

**interest rate - Legal Dictionary - The Free Dictionary**

A comprehensive term to describe any right, claim, or privilege that an individual has toward real or Personal Property. Compensation for the use of borrowed ...