Usd-based

Relating to or denominated in United States Dollars (USD). This term signifies that a financial transaction, product, service, or economic indicator is measured, priced, or settled using the USD as its reference currency. It frequently implies stability and global acceptance, as the USD is widely used in international trade and finance. Being usd-based often indicates a lower risk for transactions reliant on currencies of countries with weaker economies or more volatile political environments, since their money might devalue quickly.

Usd-based meaning with examples

• The company's international revenue is reported on a usd-based accounting system. This allows for a clear comparison with its US operations and simplifies currency conversions for investors, regardless of their local currency. The centralized system gives visibility to where the most is and where it is not.
• A usd-based commodity futures contract offers protection against price fluctuations in precious metals. Hedging using these types of contracts gives businesses that either produce or use precious metals security because their pricing will not vary.
• Many offshore investment funds are usd-based, attracting investors seeking a haven from local currency devaluation. Because the US is a large economy, its investments are seen as relatively safer than those in other places where the market fluctuates often.
• When purchasing a property overseas, the mortgage terms may be offered with a usd-based interest rate, protecting the borrower from currency risk if their income is in USD. Securing funding is easier with a usd-based agreement. This allows for lower costs and increased certainty.
• The pricing for a global software subscription service might be usd-based, reflecting its worldwide customer base and facilitating consistent billing. Because almost everyone is familiar with the US dollar, it makes for easy business operations and pricing.
• Many banks are USD-based; their exchange rates are set up with the US dollar. Because this currency is so well known, consumers find it easy to track transactions and understand exchange rates.
• The economic outlook for the global market is often judged on whether it is USD-based. The health of this financial measurement is a key indicator for economic trends worldwide.