Exchange Rate Volatility
/ɪksˈʧeɪnʤ reɪt vɒləˈtɪlɪti/
Definitions
- (n.) The measure of fluctuations or instability in the value of one currency relative to another over a period, impacting contracts and obligations denominated in foreign currencies.
The contract included a clause addressing exchange rate volatility to allocate risks between the parties.
Forms
- exchange rate volatility
Related terms
See also
Commentary
Exchange rate volatility is crucial in drafting international agreements, as it affects payment obligations and risk allocation.
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.