hot money

[ hot muhn-ee ]

noun

1. Finance, Stock Exchange. funds transferred suddenly from one country to another chiefly to avoid depreciation in value or to take advantage of higher interest rates:

   Too much foreign investment can lead to major outflows of hot money later on, making a country’s economy vulnerable.

2. Informal. the confidence that experts have about a specified outcome or result:

   The hot money is on blues and greens being in this season.

3. paper money that is stolen and can be traced or identified, especially because the bills are marked:

   The robber tried to pass some of the hot money in another state, but was caught.

   This kind of business is ideal for laundering hot money.

hot money

noun

1. capital transferred from one financial centre to another seeking the highest interest rates or the best opportunity for short-term gain, esp from changes in exchange rates

Word History and Origins

Origin of hot money¹

First recorded in 1925–30

Example Sentences

“These banks that have large amounts of institutional uninsured money...that’s going to be hot money that runs if there’s a sign of trouble,” Bair said.

From Reuters

Citi data showed on Monday that outflows resumed last week, with real money leaving Latin America and emerging Europe, the Middle East and Africa while hot money, or speculative capital, left Asia and Latam.

From Reuters

While Brazil's double-digit interest rates may still offer a lucrative carry trade for hot money, looming rate hikes from the U.S.

From Reuters

He has vowed to break the cycle of an economy dependent on short-term “hot money” lured by high interest rates.

From Seattle Times

Cryptocurrencies like Bitcoin in South Korea carry a hefty premium over international prices due to capital flow controls aimed at curbing cross-border flows of hot money, which prevent arbitrage, the Bank of America said in a report on Tuesday.

From Reuters