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Currency Exchange Risk |
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Currency Exchange RiskUncertainty about the rate at which revenues or costs denominated in one currency can be converted into another currency.Currency Exchange Risk Similar MatchesComposite currencyComposite currencyA currency defined as a specified combination of two or more currencies, normally existing only as a unit of account rather than as a physical currency. Examples include the SDR and the ECU. Currency BoardCurrency BoardEntity charged with maintaining the value of a local currency with respect to some other specified currency. Currency risk sharingCurrency risk sharingAn 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. Currency boardCurrency boardAn extreme form of pegged exchange rate in which management of both the exchange rate and the money supply are taken away from the central bank and given to an agency with instructions to back every unit of circulating domestic currency with a specified amount of foreign currency. Operates similar to the gold standard. Currency appreciationCurrency appreciationAn increase in the value of one currency relative to another currency. Appreciation occurs when, because of a change in exchange rates, a unit of one currency buys more units of another currency. Further SuggestionsReserve currencyCurrency future Reserve currency Foreign currency option Currency option Currency in circulation Foreign currency mortgage Multicurrency loans eurocurrency currency loan Currency speculation currency Currency crisis Foreign currency translation Currency call option currency swap Eurocurrency currency conversion Currency swings Currency put option Currency Currency swap Currency devaluation Under-valued currency Canonical model of currency crises |
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