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What are the exchange rate risks?
This kind of risk includes transaction risk and operation risk.

1. Transaction risk: refers to the risk arising from exchange rate changes in a specific transaction. For example, when a company or individual buys and sells currency in the foreign exchange market, if the exchange rate fluctuates, it will affect its transaction cost or income.

2. Operational risk: This involves the risks that enterprises may suffer due to exchange rate fluctuations in their daily operations. For example, the cost structure, income and profit of an enterprise will change due to exchange rate changes.