What Is Currency Risk Management?

Currency risk is also known as exchange rate risk or foreign exchange risk, which results from adverse changes in foreign exchange rates. If a company's assets and liabilities are denominated in foreign currencies, or if the contract stipulates receipt or payment in foreign currencies, then the company faces currency risks.

Currency risk management (below)

discuss

Currency risk is also known as exchange rate risk or foreign exchange risk, which results from adverse changes in foreign exchange rates. If a company's assets and liabilities are denominated in foreign currencies, or if the contract stipulates receipt or payment in foreign currencies, then the company faces currency risks.

Author

Royal Bank of England (CIB), Coyle

Translator

Qi Hua

ISBN

9787800734106

Pages

334

Fixed price

39.00 yuan

Publishing house

CITIC Publishing House

date of publish

2002-9

Introduction

Currency risk is also known as exchange rate risk or foreign exchange risk, which results from adverse changes in foreign exchange rates. If a company's assets and liabilities are denominated in foreign currencies, or if the contract stipulates receipt or payment in foreign currencies, then the company faces currency risks.

"Currency Risk Management" is part of the "Financial Risk Management" series of the basic course textbook of the National Accounting Institute. It includes six parts: overview of currency risk, foreign exchange market, hedging of currency exposure, currency futures, currency options, and currency swaps, and comprehensively discusses all areas involved in currency risk. When the size, direction or time of any future change is uncertain, the risk at this time is the exposure to change. Changes may be beneficial rather than adverse, as long as the changes are favorable, the company can benefit from exposure to financial risks.

^[1]