Foreign Exchange Risk

Currency Risk
Currency risk, also known as exchange-rate risk or foreign exchange risk, arises from the fluctuation in the exchange rate between two currencies, impacting the value of investments or transactions made in foreign currencies.
Economic Exposure
Economic exposure, also known as operating exposure, encompasses the potential impact of changes in macroeconomic variables and exchange rates on the value of a business engaged in international trade.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.