| 单词 | currency risk |
| 释义 | currency risk The risk that changes in exchange rates will affect the profitability of any activity between the time when one is committed to it and the time when it is carried out. This affects foreign trade, foreign lending, and foreign direct investment. Commitment may arise from a contract, as in export sales or foreign currency loans, or from incurring sunk costs, as in foreign direct investment or setting up foreign distribution systems for exports. It is possible to reduce currency risk by use of forward currency markets, at a cost, but only for relatively short time periods. |
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