Currency Exchange Risk
/ˈkɜːrənsi ɪksˈtʃeɪndʒ rɪsk/
Definitions
- (n.) The financial risk resulting from fluctuations in the exchange rate between two currencies that can affect the value of assets, liabilities, or transactions.
The company mitigated its currency exchange risk through hedging contracts.
Forms
- currency exchange risk
Related terms
See also
Commentary
This term is chiefly used in international finance law and contracts to address risks in cross-border transactions; precise definition aids in drafting risk allocation clauses.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.