Introduction to the classification types of foreign exchange risk

{}Posted in2023/2/25 16:14:46 | 7Browse

Foreign best forex rebate company rebatesforexbroker is the bestforexrebatecompanyevitable product of international trade forexrebatecommission economic transactions, financial investment or other economic activities when conducting fxrebatecentral exchange settlement business, refers to the economic activities of economic agents holding or using foreign exchange, the possibility of losses due to changes in exchange rates Due to the variety of factors affecting international foreign exchange transactions, so the types of foreign exchange risk that may arise is also Different kinds of foreign exchange risk classification 1, enterprise foreign exchange risk mainly including transaction risk, accounting risk and economic risk In addition, the risks faced by enterprises, and tax risk (taxexposure) It refers to the changes in the exchange rate caused by the taxable income or tax deductible losses, it is a smaller range of risks, varying from country to country, but also can not be ignored 2, Banks operating foreign exchange business risk mainly includes foreign exchange trading risk and foreign exchange credit risk and liquidation risk foreign exchange trading risk is the bank in the foreign exchange trading that the local cashback forex into foreign currency or a foreign currency into another foreign currency in the process of risk, is the foreign exchange trading risk foreign exchange credit risk refers to the foreign exchange transaction due to the parties to default and the risk to the bank liquidation risk also known as delivery risk, refers to the foreign exchange transaction in Foreign exchange transactions failed to the prescribed time, the risk of fulfilling the payment responsibility 3, the countrys foreign exchange reserves risk Since 1973, the international community to implement the floating exchange rate system, the worlds foreign exchange reserves are facing the same kind of operating environment, namely, the reserve currency diversification, reserve currency to the U.S. dollar, including the U.S. dollar, the reserve currency exchange fluctuations are very large, so that the foreign exchange reserves of countries face great risk country Foreign exchange reserves risk refers to the risk of depreciation of the reserve currency of a countrys foreign exchange reserves, mainly including the national foreign exchange inventory risk and the national foreign exchange reserves investment risk. In addition, from the field of foreign exchange risk can be broadly divided into commercial exchange rate risk and financial exchange rate risk two categories

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