Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Web Trader MT5
Z
Zambian Kwacha (ZMW)
You will find the Zambian kwacha abbreviated as ZMW. As the name indicates, ZMW refers to Zambia’s official currency. Issued by the Bank of Zambia, the Zambian kwacha is divided into 100 ngwee.
The name is derived from the word “dawn.” “A new dawn of freedom” is a nationalist phrase that presented Zambia’s independence from British rule in 1964 as the start of a new era. Four years later, in 1968, the kwacha replaced the Zambian pound, and the new name helped separate the country’s money from its colonial past.
If USD/ZMW rises from 25 to 27, one US dollar buys more kwacha, meaning the kwacha has weakened against the dollar.
ZAR
The currency code for the South African rand.
Zero Coupon Bond
To fully understand what a zero-coupon bond means, let’s break it down.
A bond is a type of loan. When you buy one, you are lending money to a government or company. In return, the issuer normally pays you interest and gives back the original amount on a fixed date.
The regular interest payment is called a coupon. A zero-coupon bond does not make these payments. Instead, it is sold for less than the amount you will receive when the bond ends.
For example, you may buy the bond for $700 and receive $1,000 at maturity, which is the repayment date. The $300 difference is your return before taxes or costs. So, zero coupon means no regular interest payments, not zero return.
Zero interest rate policy (ZIRP)
A monetary policy in which a central bank sets interest rates at or near zero to stimulate economic growth.
Zero Interest Rate Policy (ZIRP)
When an economy slows down, a central bank may try to make borrowing cheaper. One way to do this is through a zero interest rate policy, commonly called ZIRP.
Under ZIRP, the central bank keeps its main interest rate at or very close to 0%. This rate influences the cost of borrowing across the economy, including some mortgages, business loans, and bank lending.
If the policy rate falls from 3% to 0.1%, banks may also lower some of their own rates. The aim is to encourage borrowing, spending, and investment. Still, ZIRP does not make every loan interest-free, because banks continue to add fees, costs, and charges for risk.
Zero Lower Bound (ZLB)
The zero lower bound, or ZLB, describes the point where a central bank has almost no room left to cut interest rates.
Central banks usually lower rates when the economy is weak because cheaper borrowing can support spending and investment. But once the policy rate is already near 0%, another normal rate cut may have very little effect.
For example, reducing a rate from 4% to 2% gives the central bank plenty of room to act. Reducing it from 0.25% to 0% does not.
At the ZLB, central banks may use other tools, such as buying bonds or giving guidance about future rates. The limit is not always exactly zero, since some countries have used slightly negative rates.
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