Foreign Currency Exposure
/ˈfɒrɪn ˈkʌrənsi ɪkˈspoʊʒər/
Definitions
- (n.) The risk that changes in foreign exchange rates will negatively affect the value of assets, liabilities, or income denominated in a foreign currency.
The company hedged its foreign currency exposure to mitigate losses from exchange rate fluctuations.
Forms
- foreign currency exposure
Related terms
See also
Commentary
Foreign currency exposure is central in legal drafting for international contracts, often requiring clear clauses on currency risk allocation and remedies.
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.