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Home > QFINANCE Dictionary > Definition of Herstatt Risk

Definition of

Herstatt Risk

Currency & Exchange

risk of delivery failure in foreign currency transaction the risk in foreign currency exchange transactions that one party to the exchange will fail to make payment after having received payment from the other party

Recommended Further Reading (Term count)
  • Currency Risk
    Currency risk refers to the possibility that movements in foreign exchange rates could affect the value of a business operation or an investment. Whenever an investment or agreement is made based on one currency, movements of that currency against other currencies can have a significant impact on the value or performance for investors or partners using other base currencies. For example, a US investor choosing to invest in German equities could...

Definitions of ’Herstatt Risk’ and meaning of ’Herstatt Risk’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’Herstatt Risk’ and other financial terms with our online QFINANCE Financial Dictionary.

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