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:
“Common experience is the gold reserve which confers an exchange value on the currency which words are; without this reserve of shared experiences, all our pronouncements are cheques drawn on insufficient funds.”
—René Daumal (1908–1944)
“It cannot in the opinion of His Majesty’s Government be classified as slavery in the extreme acceptance of the word without some risk of terminological inexactitude.”
—Winston Churchill (1874–1965)