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Transaction exposure

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Transaction exposure
risk to a firm with known future cash flows in a foreign currency that arises from possible changes in the exchange rate.
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Transaction exposure
Definition: [crh] Risk to a firm with known future cash flows in a foreign currency, that arises from possible changes in the Definition: A HREF="/?rd=exchange+rate"exchange rate. Related: Translation exposure.

Transaction Exposure - Changes in the value of contractual (monetary) cash flows as a result of changes in currency values.

Net transaction exposure
Offsetting inflows against outflows in a given currency to determine extent of exposure to risk.
Net working capital ...

A securities transaction in which no commissions or extra fees are paid, such as in an initial public offering.
Net transaction exposure ...

Reinvoicing center A central financial subsidiary an MNC uses to reduce transaction exposure by billing all home country exports in the home currency and reinvoicing to each operating affiliate in that affiliate's localcurrency.

to reduce transaction exposure by having all home country exports billed in the home currency and then reinvoiced to each operating affiliate in that affiliate's local currency. It can also be used as a netting center.

A central financial subsidiary used by an MNC to reduce transaction exposure by having
all home country exports billed in the home currency and then reinvoiced to each operating affililate in that
affiliate's local currency.

See also: Banks, Expense, Eurodollar, Saving, Values

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