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Currency risk sharing

The financial definition for Currency risk sharing:

An agreement by the parties to a transaction to share the currency risk associated with the transaction. The arrangement involves a customized hedge contract embedded in the underlying transaction.




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A currency substitute, e.g., special drawing rights (SDRs).


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Dollar deposits held in Singapore or other Asian centers.


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Applies mainly to international equities. Currency in which gains or losses from operating an international portfolio are measured.


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Currency risk sharing
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