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Currency Risk |
Also found in: Wikipedia | 0.01 sec. |
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Currency risk Related: Exchange rate risk Currency Risk In currency exchange, the possibility that one currency will devalue to the exchanger's detriment. For example, someone may move to the United Kingdom from the United States and change all of his/her money from dollars to pounds. If he/she moves back to the United States with the same amount of pounds, there is the possibility that the pound will have devalued, resulting in fewer dollars than he/she brought to the U.K. In 1996, economist Conway Lackman suggested an extension of the Capital Asset Pricing Model to help calculate exchange risk in international trade. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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