Credit risk in an FX transaction may be due to the failure of a counterparty to meet contractual obligations.

Name: Credit risk in an FX transaction may be due to the failure of a counterparty to meet contractual obligations.
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Credit risk in an FX (foreign exchange) transaction arises when there is a possibility that a counterparty may not fulfill its financial obligations as per the contract, leading to a financial loss for the other party.

Credit Risk in an FX Transaction May Be Due to the Failure