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If 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 whe

by acover 3y ago

If 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.