Exchange Risk Guarantees

As part of a series of encouragement to exporters, government agencies in many countries offer their business insurance against export credit risk and certain export financing schemes. Many of these agencies offer exchange risk insurance to their exporters as well as the usual export credit guarantees. The exporter pays a small premium and in return the government agency absorbs all exchange risk, thereby taking profits and absorbing losses. To value and to check with such bodies are ECGD in the UK, HERMES in Germany, COFACE in France, Netherlands Credit Insurance Company in Holland, EXIM bank in the USA, ECGC in India and so on.