Foreign exchange settlement risk: Difference between revisions
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* [[Herstatt risk]] | * [[Herstatt risk]] | ||
* [[Settlement risk]] | * [[Settlement risk]] | ||
[[Category:Manage_risks]] | |||
Revision as of 22:57, 28 June 2013
The risk that one party to a foreign exchange transaction will pay the currency it sold but not receive the currency it bought.
It is also often referred to as 'Herstatt risk', although arguably this is too limited a term given the differing circumstances in which foreign exchange settlement risk has materialised.
Also called cross-currency settlement risk or principal risk.
