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Application to Purchase Foreign Currency BoP Stanlib  Form

Application to Purchase Foreign Currency BoP Stanlib Form

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hello everyone and welcome to this short video on foreign exchange risk uh often also called currency exchange risk so this video is going to be building off the two previous videos the first one the primer on how money works and the second one on the foreign exchange market or forex so here we're going to look at how international businesses actually manage their uh foreign exchange risk or currency exchange risk which arises from engaging in forex or the foreign exchange market uh so international businesses have to frequently exchange large amounts of currency both for operational and investment reasons but they do experience a very high foreign exchange risk as a consequence so delaying advertising and prices processing payments funneling money for investment purposes or to repatriate profits or revenues all of this means that any exchange rate shifts in forex pays which are pairs of currencies can lose the international business money even if they have a theoretical health

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