Foreign exchange
risk management
TR Pty Ltd, is a fashion retailer based in Melbourne, which imports goods from China.
Peter is the financial controller at TR Pty Ltd. He is organising shipments from China that will cost the business USD 100,000 per month.
Peter needs to manage their foreign exchange risks in order to monitor business costs and keep prices competitive for their customers.
Foreign exchange risk (also known as currency risk) is the risk of adverse movements in the value of transactions due to movements in the exchange rate.
Click on Peter to learn more about exchange rate volatility.