Business / Finance / Currency Risk: Applies mainly to international equities: (1) consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total private supply (i.e., central banks are buying up the difference, supporting the value of the currency through foreign exchange intervention); (2) currency value exceeding purchasing power parity.
Business / Finance / Exchange Risk: Also called currency risk; the risk that an investment's value will change because of currency exchange rates. MORE
Business / Finance / Currency Selection: An agreement by the parties to a transaction to share the currency risk associated with the transaction. The arrangement involves a customized hedge contract embedded in the underlying transaction. MORE