exchange risk

Definitions

Economics

  • 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.
  • abbreviationexchange rate risk
    (written as Exchange risk)
  • exchange risk
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