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Acronyms that contain the term foreign exchange risk
What does foreign exchange risk mean? This page is about the various possible meanings of the acronym, abbreviation, shorthand or slang term: foreign exchange risk.
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What does foreign exchange risk mean?
- Foreign exchange risk
- Foreign exchange risk (also known as FX risk, exchange rate risk or currency risk) is a financial risk that exists when a financial transaction is denominated in a currency other than the domestic currency of the company. The exchange risk arises when there is a risk of an unfavourable change in exchange rate between the domestic currency and the denominated currency before the date when the transaction is completed.Foreign exchange risk also exists when the foreign subsidiary of a firm maintains financial statements in a currency other than the domestic currency of the consolidated entity. Investors and businesses exporting or importing goods and services, or making foreign investments, have an exchange-rate risk but can take steps to manage (i.e. reduce) the risk.
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"foreign exchange risk." Abbreviations.com. STANDS4 LLC, 2024. Web. 5 May 2024. <https://www.abbreviations.com/foreign%20exchange%20risk>.
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