Currency Risk


Foreign exchange risk (also known as exchange rate risk or currency risk) is a financial risk posed by an exposure to unanticipated changes in the exchange rate between two currencies. Investors and multinational businesses exporting or importing goods and services or making foreign investments throughout the global economy are faced with an exchange rate risk which can have severe financial consequences if not managed appropriately.

Read more about Currency Risk:  Types of Exposure, Measurement, Management, History, Project Finance

Famous quotes containing the words currency and/or risk:

    One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.
    William Howard Taft (1857–1930)

    The effect of liberty to individuals is that they may do what they please: we ought to see what it will please them to do, before we risk congratulations.
    Edmund Burke (1729–1797)