EWI Stable Currency Benchmark:
How to Measure True Changes in an Asset's Value
||Analysts want a true measure of asset prices. But currencies fluctuate, sometimes wildly. How do you determine how much of an asset's price movement is the result of changes in the asset's actual value - as opposed to changes in the underlying currency being used to measure it?
||The SCB is a basket of carefully selected
currencies that, in aggregate, offer historic stability.
Analysts use the SCB as a denominator, or benchmark,
when pricing assets. The SCB factors out changes
in currency values, thereby leaving
behind only real changes in asset value.
Note: The related Stable Currency Index™ provides a safe haven from currency risk. For more information about the SCI, click here.