A negotiated agreement to share currency risk between international sellers and buyers to spread out the impact of currency rate changes. The agreement may specify how to split the loss when currency rates are unfavorable and how to split the gain when currency rates are favorable. For instance, a seller in the US may agree with the buyer in Japan that they divide the gains or losses that may result in the change of currency equally between them.
Related information about currency risk sharing:
- Currency Risk Sharing - Financial Dictionary - The Free Dictionary
An agreement by the parties to a transaction to share the currency risk associated with the transaction. The arrangement involves a customized hedge contract ...
- What is currency risk sharing? definition and meaning
Definition of currency risk sharing: A negotiated agreement to share currency risk between international sellers and buyers to spread out the impact of currency ...
- Currency risk sharing
Similar financial terms. Base Currency In terms of foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the ...
- Currency Risk Sharing Definition
Currency Risk Sharing Formal agreement among transacting parties to share the transaction risk pertaining to currency rate fluctuations. A customized hedge.
- ETC Local Currency Loan Programme (731KB - PDF) - EBRD
Local Currency Risk Sharing Special. Fund. The Fund combines EBRD capital and donor grants to share the risks of a portfolio of new local currency loans.
- CurrencyRiskSharing.com | LinkedIn
Welcome to the company profile of CurrencyRiskSharing.com on LinkedIn. Specialist in the design and implementation of currency risk sharing agreements, ...
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Currency Risk Sharing. Suppose GE expects to receive €10m. from Lufthansa from the sale of turbines in 1 year. Suppose the current spot price is $1.00/€ and ...