Covered interest parity

Japanese

金利平価

Also known as

CIP

Last reviewed

September 25, 2026

This is a draft, shown for review before publication.

Covered interest parity is the relationship under which the forward exchange rate between two currencies is determined by the spot exchange rate and the interest rates of the two currencies. If the forward exchange rate deviates from it, deposits and FX forwards can be combined in an arbitrage.