The risk of financial loss or impact arising from adverse changes in foreign exchange rates, either at a point in time or over a period of time. The adverse impact can be on one or more of the following:

  • The value of assets or liabilities denominated in a foreign currency(ies);
  • Payments due (revenue or trade debts) denominated in a foreign currency(ies);
  • Future revenue streams denominated in a foreign currency(ies); and
  • Operating expenses denominated in a foreign currency(ies);.