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I am interested in this, but already confused on page 1. The book describes a bank needing to borrow swiss francs, but that doesn't make sense to me. Why not ju
by hotpockets 3y ago
I am interested in this, but already confused on page 1. The book describes a bank needing to borrow swiss francs, but that doesn't make sense to me. Why not just borrow the money in their native currency? Does the book ever go into this?
- acover 3y agoIf you borrow in a different currency than your assets then you introduce currency risk. For example, if I make a loan of 100 CAD by borrowing 100 USD, then when the loan finishes I might only be able to convert 100 CAD to 50 USD.