Transaction risk: Difference between revisions
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imported>Doug Williamson (Mend link to Pre-transaction risk page.) |
imported>Doug Williamson (Add secondary risks.) |
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''Foreign exchange risk'' | ''Foreign exchange risk'' | ||
The risk of | 1. | ||
The risk of changes in foreign exchange rates from the time a foreign currency-denominated transaction is entered into, until it is settled. This will result in changes in the domestic currency value paid or received. | |||
2. | |||
More broadly, the risks in 1. above, together with any secondary adverse effects, resulting from the changes described above. | |||
Also known as transactional risk, transaction exposure or transactional exposure. | Also known as transactional risk, transaction exposure or transactional exposure. | ||
Revision as of 15:33, 18 March 2017
Foreign exchange risk
1.
The risk of changes in foreign exchange rates from the time a foreign currency-denominated transaction is entered into, until it is settled. This will result in changes in the domestic currency value paid or received.
2.
More broadly, the risks in 1. above, together with any secondary adverse effects, resulting from the changes described above.
Also known as transactional risk, transaction exposure or transactional exposure.
