3 Answers
Exchange rate risk is the possibility that a currency will depreciate or appreciate, causing the value of an asset to change.
Exchange rate risk can be caused by a number of factors including:
- Changes in the value of a country's currency
- Inflationary pressures
- Political instability
- Trade wars
Exchange rate risk is the risk that the value of a currency fluctuates in relation to other currencies.
Exchange rate risk may be a concern for businesses that have an international presence. It can also be a concern for individuals with investments, foreign travel, or international business relationships.
Exchange rate risk is the risk of loss that can be incurred when a currency is converted to another. It can also be defined as the chance of a currency’s value changing in comparison to another.
Exchange rate risk is one of the most important risks for any business. In order to minimize this risk, it is important that businesses have a strategy in place and take proactive measures such as hedging and managing foreign exchange exposure.
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