Translation and analysis of words by ChatGPT artificial intelligence
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extra risk transaction - translation to italian
![Silver coin of the [[Maurya Empire]], from the 3rd century BC](https://commons.wikimedia.org/wiki/Special:FilePath/MauryanCoin.JPG?width=200 "Silver coin of the [[Maurya Empire]], from the 3rd century BC")
Definition
Wikipedia
Foreign exchange risk (also known as FX risk, exchange rate risk or currency risk) is a financial risk that exists when a financial transaction is denominated in a currency other than the domestic currency of the company. The exchange risk arises when there is a risk of an unfavourable change in exchange rate between the domestic currency and the denominated currency before the date when the transaction is completed.
Foreign exchange risk also exists when the foreign subsidiary of a firm maintains financial statements in a currency other than the domestic currency of the consolidated entity.
Investors and businesses exporting or importing goods and services, or making foreign investments, have an exchange-rate risk but can take steps to manage (i.e. reduce) the risk.
