Browsing: currency risk

This thought-provoking guest post is by Andrew Henderson, the author of Nomad Capitalist. Even when you have discovered the freedom of expat life, chances are that you will still need to process the transition. It can feel a bit like a home-country detox. This is more than just dealing with…

Currency risk arises from exchange rate moves between pairs of currencies. If you have investments or assets in a foreign country with a different currency, you face currency risk, unless the foreign currency is pegged to your domestic currency or your exposure is hedged. A simple example shows how currency…