Foreign Currency Transaction Gain Loss

Posted in Finance, Accounting and Economics Terms, Total Reads: 1688

Definition: Foreign Currency Transaction Gain Loss

Foreign currency transaction gain/loss plays a major in analysis of foreign operations for multinational firms. If the interest rates are high in a particular country, there will be foreign exchange transaction loss when the MNC wants to establish operations over there. Similarly, if the interest rates are low, there will be foreign exchange currency transaction gain.

The interrelation between interest rates and foreign currency exchange plays a vital role in determining the necessary investment and change in financial structure for a business venture. The exclusion of foreign exchange loss or gain will give misleading performance result for an MNC.

Browse the definition and meaning of more terms similar to Foreign Currency Transaction Gain Loss. The Management Dictionary covers over 7000 business concepts from 6 categories. This definition and concept has been researched & authored by our Business Concepts Team members.

Search & Explore : Management Dictionary

Share this Page on:
Facebook ShareTweetShare on Linkedin