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Exchange Rates and Exposure Management

In: How to Account for Foreign Currencies

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  • Jeff Pearcy

Abstract

Before entering into the accounting for foreign currencies we have to have some understanding of how exchange rates affect businesses and how business practices have changed in response to changes in the foreign currency environment. This chapter therefore examines the recent history of exchange rates, the impact of the changes which have taken place and the emergence of exposure management techniques. We shall meet some specialised terminology — for example, ‘exposure’ — and it will be useful to explain some of the terms in common use.

Suggested Citation

  • Jeff Pearcy, 1984. "Exchange Rates and Exposure Management," Palgrave Macmillan Books, in: How to Account for Foreign Currencies, chapter 1, pages 9-18, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-07111-1_2
    DOI: 10.1007/978-1-349-07111-1_2
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