Currency Exchange Risk

 

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Currency Exchange Risk

Uncertainty about the rate at which revenues or costs denominated in one currency can be converted into another currency.



Currency Exchange Risk

Similar Matches

Intervention currency

Intervention currency

A currency that is commonly used by central banks for exchange market intervention. See reserve currency.


Currency swings

Currency swings

These affect foreign currency mortgages. In pound sterling terms, the value of the capital outstanding on your mortgage can rise or fall dramatically if there is movement in the value of either the currency of the loan or UK pounds sterling. If the value of the pound increases, you should benefit from lower repayments, as the value of the foreign currency you have borrowed decreases. Less sterling is required to buy the same amount of foreign currency necessary to meet the repayments and vice versa.


Currency in circulation

Currency in circulation

Paper money, coins, and demand deposits that constitute all the money circulating in the economy.


Currency call option

Currency call option

Contract that gives the holder the right to purchase a specific currency at a specified price (exchange rate) within a specific period of time.


Currency risk sharing

Currency risk sharing

An agreement by the parties to a transaction to share the currency risk associated with the transaction. The arrangement involves a customized hedge contract embedded in the underlying transaction.


Further Suggestions

Artificial currency
Currency futures contract
Under-valued currency
Eurocurrency
Composite currency
Foreign currency option
Reporting currency
Currency depreciation
European Currency Unit
Currency appreciation
Currency board
Foreign currency translation
Currency union
Strong Currency
Over-valued currency
Currency arbitrage
Currency swap
Eurocurrency market
Currency option
currency loan
currency conversion
Currency depreciation
Multicurrency loans
Multicurrency clause
Currency revaluation


 
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