Statrys Forex 101: What is FX Exposure?

In this episode of Statrys Forex 101, Jonathan Cusimano, Head of FX at Statrys, explains what foreign exchange (FX) exposure means and why it matters for businesses dealing in more than one currency. FX exposure arises when a company’s cash flows are affected by movements in exchange rates, particularly when transactions are denominated in a foreign currency rather than the company’s domestic currency.

Using a simple business example, Jonathan shows how even a straightforward international payment can introduce currency risk.

Key Takeaways

• What FX exposure means in a business context
• How exchange rate fluctuations create financial risk
• Why receiving or paying in foreign currencies matters
• A simple example of FX exposure for international businesses