Exchange Rate Adjustment
/ɪksˈtʃeɪndʒ reɪt əˌdʒʌstmənt/
Definitions
- (n.) A modification of the exchange rate between two currencies as stipulated in a contract to reflect currency fluctuations.
The contract included an exchange rate adjustment clause to mitigate currency risk.
Forms
- exchange rate adjustment
- exchange rate adjustments
Related terms
See also
Commentary
Commonly used in international trade agreements to allocate risk of currency value changes between parties.
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.