Foreign exchange risk

Foreign exchange risks arise for a credit institution, if liabilities or obligations are entered into in a foreign currency, that cannot be hedged by an offsetting position or a derivative contract. An unfavourable development in the exchange rate may consequently lead to losses being incurred.

Term-Nr.: 381

German: Fremdwährungsrisiko (361)

Source: FMA AT m. e. E., 30.10.2018