Valuuttaaltistus
Valuuttaaltistus refers to the risk that a company or investor faces due to fluctuations in foreign exchange rates. When a business operates internationally or holds assets denominated in a foreign currency, the value of its financial statements or investments can change as the exchange rate between its home currency and the foreign currency shifts. This exposure can impact profitability, asset values, and the overall financial health of the entity.
There are several types of currency exposure. Transaction exposure arises from specific, identifiable transactions that will
Companies can manage currency exposure through various hedging strategies. These may include using financial instruments like