Term:
Currency Translation Exposure
Definition:
The Bank records its assets and liabilities in U.S. dollars despite the fact that it has assets and liabilities in up to forty-five different currencies. As a result, the value of its assets/liabilities in U.S. dollar terms is liable to fluctuate due to exchange rate movements between the U.S. dollar and other currencies in which it has assets/liabilities. This is the currency translation exposure.
Domain:
Finance
Source:
World Bank: Glossary of Finance and Debt