Exchange Rate Risk

The probability of loss stemming from likely changes in assets and/or liabilities due to fluctuations in exchange rates in the future. There are several methods that investors can employ to hedge the exchange rate risk such as having positions in both finance and goods markets, investing in more than one country’s finance market and making use of derivative products or markets.

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* The views expressed here are those of the authors. They do not necessarily reflect the official views of the Central Bank of the Republic of Turkey.