Foreign Exchange Risk
When companies conduct business across borders, they must deal in foreign currencies. Companies must exchange foreign currencies for home currencies when dealing with receivables, and vice versa for payables. This is done at the current exchange rate between the two countries. Foreign exchange risk is the risk that the exchange rate will change unfavorably before the currency is exchanged.
Read more about this topic: Foreign Exchange Hedge
Famous quotes containing the words foreign, exchange and/or risk:
“It’s not that I don’t want to be a beauty, that I don’t yearn to be dripping with glamor. It’s just that I can’t see how any woman can find time to do to herself all the things that must apparently be done to make herself beautiful and, having once done them, how anyone without the strength of mind of a foreign missionary can keep up such a regime.”
—Cornelia Otis Skinner (1901–1979)
“Love is often nothing but a favorable exchange between two people who get the most of what they can expect, considering their value on the personality market.”
—Erich Fromm (1900–1980)
“I saw the man my friend ... wants pardoned, Thomas Flinton. He is a bright, good-looking fellow.... Of his innocence all are confident. The governor strikes me as a man seeking popularity, who lacks the independence and manhood to do right at the risk of losing popularity. Afraid of what will be said. He is prejudiced against the Irish and Democrats.”
—Rutherford Birchard Hayes (1822–1893)