Collection float and Currency risk: Difference between pages
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imported>Doug Williamson (Identify the components of collection float. Source: ACMF October 2016, p34.) |
imported>Doug Williamson (Layout.) |
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The | 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 == | == See also == | ||
*[[ | * [[Contingent risk]] | ||
*[[ | * [[Cross-currency interest rate swap]] | ||
* [[ | * [[Foreign exchange risk]] | ||
*[[ | * [[Transaction exposure]] | ||
*[[ | * [[Translation exposure]] | ||
===Other links=== | |||
[http://www.treasurers.org/node/5281 Currency risk, Will Spinney, ACT 2009] | |||
[[Category: | [[Category:Manage_risks]] |
Revision as of 08:58, 11 May 2015
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