Currency Volatility and Its Impact on Cross-Border Payment Operations: A Risk Perspective

Abstract

Currency volatility, characterized by unpredictable fluctuations in exchange rates, poses significant challenges for cross-border payment operations. This research paper explores the intricate relationship between currency volatility and its impact on global financial transactions. It investigates key factors driving volatility, assesses risks to stakeholders, and evaluates mitigation strategies. The study incorporates empirical data to highlight real-world scenarios and provides actionable insights for businesses and policymakers. This paper concludes with recommendations to enhance resilience in cross-border payment systems.