Foreign exchange rate risk, or currency risk, could potentially happen when the value of one currency fluctuates relative to another. For investors and businesses operating in global markets ...
A flexible exchange rate is an essential component of the Bank of Canada’s monetary policy framework. This is because it can act as a shock absorber for the Canadian economy. The Canadian dollar is ...
The most common use of currency forwards is hedging against exchange-rate risk. For example, a U.S. company expecting to receive 10 million euros in six months might sell those euros forward today ...