Foreign exchange economic risk is a kind of foreign exchange risk faced by enterprises. Refers to a potential risk, that is, unexpected exchange rate changes will lead to changes in enterprise assets, income or cash flow in a certain period in the future. The change of exchange rate affects the production cost, sales price and production and sales quantity of enterprises, and changes the final income of enterprises. Foreign exchange economic risks have a great impact on enterprises. The characteristics of foreign exchange economic risks are as follows: first, economic risks cannot be accurately identified and measured, and economic risks largely depend on the degree to which changes in sales, prices or costs reflect changes in exchange rates. For multinational enterprises, exchange rate changes not only cause temporary price changes, but also have long-term or even permanent effects on some environmental variables (such as interest rates and demand structure). Changes in environmental variables will cause changes in the company's product prices, market share, production costs and other indicators, thus causing income fluctuations and bringing economic risks to enterprises; Second, economic risks exist in the long-term, medium-term and short-term, unlike short-term and one-off transaction risks and conversion risks; Third, economic risks are generated through indirect channels, that is, exchange rate changes-economic environment changes-income changes, even pure domestic enterprises will face economic risks. Economic risk is manifested in two forms: first, asset risk, that is, the impact of exchange rate fluctuations on the value of enterprise assets (liabilities) expressed in the currency of the home country; The second is operational risk, that is, the impact of exchange rate fluctuations on corporate cash flow.

However, asset risks are not always apparent. If banks and international enterprises do not use foreign currency in their business activities, but only use local currency to calculate their revenues and expenditures, then there is no asset risk. The emergence and disappearance of asset risks are directly reflected in the accounting "exchange gains and losses" account, and can also lead to the inflow or outflow of enterprise assets. Exchange gains and losses are the gains and losses caused by changes in the value of foreign currency monetary assets and liabilities due to changes in the foreign currency exchange rate. Operational risk comes from currency fluctuation and price change in actual operation. However, when the exchange rate change can be expected, this expected change will be decomposed into the financial market and reflected in the inflation and interest rate difference between the home country and the host country. If the financial market can't effectively adjust this, the impact of expected exchange rate changes will also be reflected in the expected cash flow generated by subsidiaries and the market value of the parent company.