currency exchange risk

Uncertainty about the rate at which revenues or costs denominated in one currency can be converted into another currency. Bloomberg Financial Dictionary

Financial and business terms. 2012.

Look at other dictionaries:

  • Exchange risk — The variability of a firm s value that results from unexpected exchange rate changes or the extent to which the present value of a firm is expected to change as a result of a given currency s appreciation or depreciation. The New York Times… …   Financial and business terms

  • exchange risk — The variability of a firm s value that results from unexpected exchange rate changes, or the extent to which the present value of a firm is expected to change as a result of a given currency s appreciation or depreciation. Bloomberg Financial… …   Financial and business terms

  • Exchange risk —   The risk of market fluctuation of an asset or liability denominated in a foreign currency, such as the ownership of a currency (spot or forward) or trade account payable in foreign currency …   International financial encyclopaedia

  • Foreign exchange risk —   (exchange rate risk)   Risk that the market value of the bank, measured in the base currency, is exposed to fluctuations in foreign exchange rates. This risk is quantified by the open currency position. The related standard reports are: • Open… …   International financial encyclopaedia

  • Foreign-Exchange Risk — 1. The risk of an investment s value changing due to changes in currency exchange rates. 2. The risk that an investor will have to close out a long or short position in a foreign currency at a loss due to an adverse movement in exchange rates.… …   Investment dictionary

  • foreign exchange risk — One of nine risks defined by the OCC. The risk to earnings or capital arising from adverse movement of foreign exchange rates. The Federal Reserve includes this risk in its definition of market risk. American Banker Glossary The risk that a long… …   Financial and business terms

  • Foreign exchange risk — The risk that a long or short position in a foreign currency might have to be closed out at a loss due to an adverse movement in the currency rates. The New York Times Financial Glossary …   Financial and business terms

  • Cross-Currency Settlement Risk — A type of settlement risk in which a party involved in a foreign exchange transaction remits the currency it has sold, but does not receive the currency it has bought. In cross currency settlement risk, the full amount of the currency purchased… …   Investment dictionary

  • Foreign exchange risk analysis on foreign currency interest report —   A standard position report which analyses the foreign exchange risk on interest by comparing defined risks with costs and expenses. It gives a total cumulative mismatch for the foreign exchange risk as well as a mismatch for each individual… …   International financial encyclopaedia

  • Online Currency Exchange — An online system for exchanging one country s currency for another. There is no central exchange in the forex market because it is a network of computers that connect banks, brokers and traders together. Online currency exchanges are essentially… …   Investment dictionary

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