What is currency risk?

Risk refers to the foreign debt that has to be converted into foreign currency or repaid by export of products.

All countries in the world generally implement the floating exchange rate system, and the price comparison between,, mark, etc., is always in sharp fluctuation. Due to the change of exchange rate, it is difficult to grasp the final accounts of international creditor’s rights and debts in advance, leading to the exchange rate risk.

Our country is also in a floating exchange rate system, the exchange rate risk still seriously affects our balance of payments and the economic interests of our companies.