Currency risk: Difference between revisions
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imported>Doug Williamson (Categorise page.) |
imported>Doug Williamson m (Capitalisation in list.) |
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This can take the form of: | 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. | A more complex area of risk concerns contingent, or pre-transaction risk. | ||
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[http://www.treasurers.org/node/5281 Currency risk, Will Spinney, ACT 2009] | [http://www.treasurers.org/node/5281 Currency risk, Will Spinney, ACT 2009] | ||
[[Category: | [[Category:Manage_risks]] | ||
Revision as of 17:47, 20 April 2014
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
