Today, what are the types of foreign exchange risks with LTG GOLDROCK?
In all activities organized by international enterprises, that is, in its business activities, results, and expected business income, there are foreign exchange risks caused by changes in foreign exchange exchange rates.There are many types of foreign exchange risks. The risk in business activities is transaction risk. The risk in the results of business activities is accounting risk.Essence
1. Trading risk
Trading risk refers to the risks caused by different exchange rates caused by the exchange rate during the settlement of the exchange rate at the time of the settlement during the settlement of foreign currency pricing transactions.Trading risks include the following:
The import and export of goods or labor with the payment conditions of the period or extension of payment is the risk brought by the changes in foreign exchange rate changes before the shipment of goods and labor provided by goods or labor.
In the international credit activities of foreign currency pricing, the exchange rate risk existed before the debt and debt were settled
Exchange rate risks in external funding.That is, when borrowing one kind of foreign currency and need to be replaced with another foreign currency, funders may bear the risk of changes in exchange rates between borrowing currency and using currency.
The risks generated by the changes in the exchange rate and the due exchange rate of the expiration of the exchanges are agreed.Foreign exchange risk is a common risk of foreign exchange, which exists in receivables and all monetary liabilities.Because the exchange between the local currency and the foreign currency, or the exchange between different foreign currency, will generate foreign exchange risks, therefore, commercial banks that open foreign exchange trading business are facing a lot of foreign exchange transaction risks.When foreign exchange transactions are carried out by foreign currency loans and borrowings, the same transaction risk will also be faced, and personal trading foreign exchange is no exception.In addition, some of the bank's off -balance -sheet business also contains foreign exchange transactions.Such as buying and selling foreign exchange tools, foreign exchange long -term contracts, futures contracts, option contracts and exchange contracts, etc., as well as purchasing foreign -related business contracts that have not yet been liquidated and the customer's price have long been determined.
2. Accounting risk
Accounting risk is also called converted risk, which refers to the possibility of changes in the amount of some foreign exchange funds in the corporate balance sheet caused by changes in foreign exchange rates.Accounting risk is a loss and income of the book, not the actual profit or loss at the time of delivery, but it will affect the results of the report of corporate assets and liabilities.
3. Economic risk
Economic risks refer to the changes in the product cost and price of the company due to unexpected foreign exchange rate changes, which leads to the uncertainty of changes in the future business income of the enterprise.
4. Reserve risk
Reserve risk refers to the possibility of foreign exchange as a reserve asset, which causes value fluctuations due to changes in foreign exchange exchange rates.As long as the country is as small as individuals, as long as they hold foreign exchange assets, they will face reserve risks.A country's foreign exchange reserves may suffer losses due to changes in exchange rates. Similarly, changes in the exchange rate will also change the actual value of enterprises and personal foreign exchange reserves assets.
5. The inner connection of these four types of risks
The above four types of risks have a certain connection. From time to time, accounting risk is the degree of changes in assets or liabilities caused by exchange rate changes in the past accounting data.During transactions or settlement, the actual economic loss or income caused by the exchange rate changes; and the economic risk is uncertainty of future business activities and operating income due to changes in exchange rates.
