Three Types of Currency Risk

There are three main types of Currency | Exchange Rate Risk

There are three main types of currency risk as detailed below. Economic risk The source of economic risk is the

A firm’s translation exposure is the extent to which its financial reporting is affected by exchange rate movements. As all

A firm has economic exposure (also known as forecast risk) to the degree that its market value is influenced by

A firm has transaction exposure whenever it has contractual cash flows (receivables and payables) whose values are subject to unanticipated

Foreign exchange risk (also known as FX risk, exchange rate risk or currency risk) is a financial risk that exists