Foreign Currency Effects Law and Legal Definition
Foreign currency effects refer to the extent to which the changes in a foreign currency affects the return on a foreign investment. It is the gain or loss on foreign investments due to variations in the relative value of assets denominated in a currency other than the principal currency with which a corporate usually conducts business. A rising domestic currency means foreign investments will result in lower returns when converted back to the domestic currency. To the extent a foreign currency appreciates relative to the dollar, returns on foreign investments will increase in terms of dollars.
Legal Definition list
Related Legal Terms
- Adoption Record [Foreign Relations]
- Adoption Service [Foreign Relations]
- Affect Interstate And Foreign Commerce
- Agency or Instrumentality of a Foreign State
- Agent of a Foreign Power
- Agent of a Foreign Principal
- American Foreign Policy Council [AFPC]
- Automated Foreign Trade Zone Reporting Program
- Bona fide Foreign Resident
- Brokering Activities [Foreign Relations]
