Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,895,475,224 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Exchange Rate Risk

   Also found in: Wikipedia 0.01 sec.
Exchange rate risk
Also called currency risk; the risk that an investment's value will change because of currency exchange rates.
Foreign Exchange Risk
The risk that the return on an investment may be reduced or eliminated because of a change in the exchange rate of two currencies. For example, if an American has a CD in the United Kingdom worth 1 million British pounds and the exchange rate is 2 USD: 1 GBP, then the American effectively has $2 million in the CD. However, if the exchange rate changes significantly to, say, 1 USD: 1 GBP, then the American only has $1 million in the CD, even though he/she still has 1 million pounds. Foreign exchange risk is also called exchange rate risk.
exchange rate risk
See foreign exchange risk.
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.
?Page tools
Printer friendly
Cite / link 		Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
Byline: Daily Star Staff Summary: Turkey is seeking to switch to payments in national currencies for $10 billion worth of trade with neighboring Iran to lessen exchange rate risks and bolster trade volumes, a Turkish government source said on Friday.
Turkey plans to dump dollar in trade with Iran by The Daily Star (Beirut, Lebanon)
Banking managers pointed out that GDR issuance enables domestic enterprises to raise foreign currency-denominated funds directly, at lower cost and exchange rate risk, so as to meet their foreign-currency obligations.
GDR becomes a favorite fund-raising instrument by The Taiwan Economic News
With that, there is less of a chance that exchange rate risk will be a significant factor as investors weigh the consequences of lending to Australia.
Lending to Australian's Flat-Lined in February, But May Accelerate by Mena Report
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.