Exchange risk

 

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Exchange risk

Uncertainty about the value of an asset, liability, or commitment due to uncertainty about the future value of an exchange rate. Unless they cover themselves in the forward market, traders with commitments to pay or receive foreign currency in the future bear exchange risk. So do holders of assets and liabilities denominated in foreign currency.



Similar Matches

Foreign exchange controls

Foreign exchange controls

Various forms of controls imposed by a government on the purchase/sale of foreign currencies by residents or on the purchase/sale of local currency by nonresidents.


Amman Stock Exchange

Amman Stock Exchange

The only agency authorized as a formal market for trading securities in Jordan.


Istanbul Stock Exchange

Istanbul Stock Exchange

The sole securities exchange in Turkey.


Spot exchange rates

Spot exchange rates

Exchange rate on currency for immediate delivery. Related: Forward exchange rate.


Exchange rate overshooting

Exchange rate overshooting

The response of an exchange rate to a shock by first moving beyond where it will ultimately settle. Thought to help explain exchange rate volatility, this was first modeled by Dornbusch (1976).


Further Suggestions

share exchange
European exchange rate mechanism (ERM)
Floating exchange rate system
Purchasing power parity exchange rate
Exchange rate risk
Canadian Exchange Group (CEG)
Regional stock exchanges
Shenzhen Stock Exchange
Freely floating exchange rate system
Malaysia Commodity Exchange
Nominal exchange rate
Exchangeable
Forward foreign exchange contract
Exchange rationing
Securities Exchange Act of 1934
London Metal Exchange
Swiss Options and Financial Futures Exchange (SOFFEX)
Sao Paulo Stock Exchange
International Stock Exchange of the UK and the Republic of Ireland (ISE)
Fixed exchange rate
Securities Exchange of Thailand (SET)
New York Futures Exchange (NYFE)
Exchange Rate Mechanism (ERM)
Exchange rate protection
Arizona Stock Exchange


 
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