Cross-Currency Settlement Risk

Cross-Currency Settlement Risk - risks associated with contractual payments in foreign currency when one party to the contract pays one currency until payment is received in another. The risk pool settlements there because of discrepancies hours domestic interbank payment systems. In the interval between payments are part of the credit and market risks. The risk of losses from unexpected changes in exchange rates, including:
- line changes in exchange rates;
- volatility of the exchange rate;
Changes of profits earned abroad by converting operations.
There are operational, accounting and economic currency risks.