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Foreign-Exchange Risk |
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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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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Foreign Official Institutions Foreign Plan Foreign public borrower Foreign Restricted List Foreign Sales Corporation foreign tax credit Foreign Tax Credit or Deduction Foreign-Exchange Risk Foreign-Source Income Foreign-Targeted Issue Foreigner Forensic Accounting Forex Forfaiter Forfaiter (Primary) |
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