Currency risk and Frontier market: Difference between pages

Revision as of 10:41, 6 February 2019

Market classification.

A frontier market is too small to be considered an emerging market but is more developed than a least developing country.

Markets (in order of economic development) are often classified as:

Developed;

Emerging;

Frontier;

Least Developing.

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-The risk that arises from a change in currency rates.
+''Market classification.''
-This can take the form of:
+A frontier market is too small to be considered an emerging market but is more developed than a least developing country.
-#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.
+Markets (in order of economic development) are often classified as:
+::Developed;
+::Emerging;
+::Frontier;
+::Least Developing.
-== See also ==
-* [[Contingent risk]]
-* [[Cross-currency interest rate swap]]
-* [[Foreign exchange risk]]
-* [[Transaction exposure]]
-* [[Translation exposure]]
+==See also==
+*[[International Bank for Reconstruction and Development]]
+*[[United Nations Conference on Trade and Development]]
-===Other links===
+[[Category:Technical_skills]]
-[http://www.treasurers.org/node/5281 Currency risk, Will Spinney, ACT 2009]
+[[Category:The_business_context]]
-[[Category:Manage_risks]]