1. International trade thus involves an element of currency exchange risk. 2. Second, it attracts hot money into the country to finance the current account deficit because investors perceive no currency risk. 3. We actively manage currency risk. 4. We manage interest rate risk as well as currency risk. 5. Currency risk is the risk that one currency will change its value in relation to another such that unexpected losses or gains are made. 6. The bank with which the exporter makes the forward contract must itself hedge its position, otherwise it too will be exposed to currency risk. 7. Analysts said U.S. investors may sell Gallaher stock, fearful of currency risks. 8. And investors might hedge their currency risks in futures markets that would thrive in the absence of the false sense of security created by central bank promises. 9. And the money was available in dollars, meaning it carried none of the currency risk. 10. And then, about seven years ago, I recognized that certain academic problems, like political and currency risk, were best studied with data from nontraditional markets. |
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