Exchange Rate Risk
/ɪksˈtʃeɪndʒ reɪt rɪsk/
Definitions
- (n.) The risk of financial loss resulting from fluctuations in the exchange rate between two currencies relevant to a legal contract or transaction.
The contract included a clause to mitigate exchange rate risk due to expected currency volatility.
Forms
- exchange rate risk
Related terms
See also
Commentary
Often addressed in international contracts and finance-related agreements to allocate or minimize potential losses from currency value changes.
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.