You can pretty much guarantee in every Financial Management exam there will be a question on foreign exchange risk. Due to the nature of the transaction calculation many students struggle to understand exchange rate risk. Top tutor Jo Tuffill says that ‘Trussonomics’ (Remember there was a UK PM called Liz Truss) has helped to put exchange rate risk into the news, and could help all students become exchange rate gurus!
There are four basic steps to take, and you can read all about them in the latest PQ magazine (see page 29): https://issuu.com/pqpublishing/docs/pq_feb23_multi.
