Currency risk: Difference between revisions
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imported>Doug Williamson m (ACT Website link added 2/10/13) |
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Also known as Currency exposure or Foreign exchange risk. | Also known as Currency exposure or Foreign exchange risk. | ||
== See also == | == See also == | ||
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* [[Transaction exposure]] | * [[Transaction exposure]] | ||
* [[Translation exposure]] | * [[Translation exposure]] | ||
==Other links== | |||
[http://www.treasurers.org/node/5281 Currency risk, Will Spinney, ACT 2009] | |||
Revision as of 11:09, 2 October 2013
The risk that arises from a change in currency rates.
This can take the form of:
- a receipt/payment of more or less home currency than expected when a transaction is settled (transaction risk)
- a change in asset/liability values in a balance sheet, profit /loss in an income statement (translation risk), or
- a change in competitiveness as rates change relative to buyers, suppliers or competitors (economic risk).
A more complex area of risk concerns contingent, or pre-transaction risk.
Also known as Currency exposure or Foreign exchange risk.
See also
- Contingent risk
- Cross-currency interest rate swap
- Foreign exchange risk
- Transaction exposure
- Translation exposure
