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What is exchange rate risk?

User Synthia
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2 Answers

6 votes

Answer:

It fluctuates

Step-by-step explanation:

The exchange rate is always changing therefore say £1 was worth $2 then it changed to £1 being worth $1.50. Its constsantly changing.

User Niko Zarzani
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5.6k points
2 votes

Answer:

Exchange rate risk is the risk that investors and business people have when converting their money to a foreign currency to invest or do business. It is the risk that the money might not be worth as much when it eventually gets converted back to the domestic currency.

User Xyrus
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