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Translation Loss

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Translation Loss
The loss that occurs when one exchanges one floating currency for another and then trades back into the first currency after it has become stronger. For example, suppose a person has 1,000,000 U.S. dollars and exchanges them for 500,000 British pounds; this means the exchange rate is two dollars per pound. Later, if that person still has those 500,000 pounds when the dollar has risen (quite dramatically) to one dollar per pound and exchanges them back to dollars, he/she has $500,000 instead of $1 million. In this case, the translation loss is $500,000.

translation loss
The loss that results when a firm translates amounts stated in one currency into terms of another currency. The loss is incurred when the firm translates from a currency that has declined in value relative to the currency into which the amounts are being converted.


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When such a stratified language is translated into Italian, the question of translation loss is a crucial one and the translator can only hope to limit the loss as much as possible by resorting to the resources and stratifications of the oral language.
The third quarter foreign currency translation loss in Russia was $32 million.
The prior year period's results included a non-cash foreign exchange translation loss of $69.
 
 
 
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