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Currency Exchange Risks
Currency exchange risks involve the potential for losses due to fluctuations in the exchange rate between two currencies when conducting international transactions.
EUR
The primary currency for the Eurozone, adopted by 19 of the European Union's 27 nations.
Foreign Exchange
The exchange or swapping of one type of currency for another.
Absolute Purchasing Power Parity
A theory suggesting that the exchange rate between two currencies should equal the ratio of the countries' price levels for a fixed basket of goods and services.
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