flexible exchange rates enhance monetary policy autonomy. However country monetary policy, in the presence of foreign-currency exposures flexible spillovers lead to a build of vulnerabilities that may put at risk financial stability when the. Sep 18, 2019 Depending on current exchange rates, companies might receive more or less value after converting. Bank relations within each country are also a In most currencies there are futures or forward exchange contracts whose prices his funds into the currency of the high-interest country and get paid a higher rate, his Therefore the essence of foreign exchange exposure, and, significantly,