exchange risk
noun[U]
ukus(alsoforeign exchange risk)FINANCE
theriskoflosingmoneyon aninvestmentorsalebecause ofchangesinexchangerates:
Anargumentinfavourofjoiningtheeurois that it wouldminimizeexchangerisk.
Examplesofexchange risk
exchange risk
Forward contracts can be used to hedge or cover exposure to foreignexchangerisk.
From
This example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Other types of financial risks, such as foreignexchangeriskor stock market risk, can be immunized using similar strategies.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.It prevents negative foreignexchangeriskfor either party.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Foreignexchangeriskis the risk that the exchange rate will change unfavorably before payment is made or received in the currency.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.A deviation from one or more of the three international parity conditions generally needs to occur for an exposure to foreignexchangerisk.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Hedging is a way for a company to minimize or eliminate foreignexchangerisk.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Companies may also use them to avoid foreignexchangerisk.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.These instruments are commonly used for currency speculation and arbitrage or for hedging foreignexchangerisk.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.Unlike covered interest arbitrage, uncovered interest arbitrage involves no hedging of foreignexchangeriskwith the use of forward contracts or any other contract.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.This createsexchangeriskfor any account holder, in the same way one would experienceexchangeriskby holding a bank account in a foreign currency.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.
- development-corporation
- development economics
- development-economics
- development environment
- development-environment
- development grant
- development-grant
- development land
- development-land
- development mechanism
- development methodology
- development plan
- development-plan
- development workshop
- development zone
- development-zone
- deviance
- deviant
- deviant peer
- deviate
- deviated
- deviating
- deviation
- device
- scale insect