Definition of liquidity in English:



  • 1[mass noun] The availability of liquid assets to a market or company.

    [as modifier] ‘the banks closed, causing serious liquidity problems for smaller companies’
    • ‘‘We have notions of linkages between liquidity and the bond markets, and between liquidity and different assets,’ says Diamond.’
    • ‘This created a situation of low liquidity in the market and, according to him, it is easier to influence the market in times of low volume.’
    • ‘Irish businesses are facing the most serious liquidity squeeze in years.’
    • ‘Companies also become vulnerable when they no longer clear the hurdles for initial inclusion, such as market value and trading liquidity.’
    • ‘In the long term we should never again have currency crisis interest rates, nor liquidity shortages of any manifest kind.’
    1. 1.1Liquid assets; cash.
      ‘a firm may be unable to pay unless it has spare liquidity’
      • ‘Purchasing securities from a primary dealer and paying for them with cash adds liquidity to the banking system.’
      • ‘Having ample cash is great for liquidity, but money sitting around as cash is not working for you and thus is not very advantageous.’
      • ‘All investors should have cash holdings, if only to furnish liquidity for short-term requirements or emergencies.’
      • ‘The same mechanism can be extended for dollar liquidity.’
      • ‘Potentially, an economy can stagnate until the crisis eases by sufficient liquidity coming back into general circulation.’
      translucency, lucidity, pellucidity, limpidness, limpidity, glassiness, liquidity, clearness, clarity
      View synonyms
    2. 1.2A high volume of activity in a market.
      • ‘The bank is more concerned with liquidity than profitability, so that its central bank clients can withdraw funds without publicity at a moment's notice.’
      • ‘Because of low liquidity, the turnover of B shares remained static and most B shares were underpriced for many years.’
      • ‘Allowing them access to the exchange using authorised brokers would increase transparency and boost liquidity, Shen said.’
      • ‘The territory's top securities regulator said liquidity, transaction costs and managerial skills in Hong Kong remained among the best in Asia.’
      • ‘Unfortunately, they increased the price of imports at a time of low liquidity, and contributed materially to a slump in world trade.’


Early 17th century: from French liquidité or medieval Latin liquiditas, from Latin liquidus (see liquid).