foreign exchange settlement risk (cross-currency settlement risk)

What is foreign exchange settlement risk (cross-currency settlement risk)?

foreign exchange settlement risk (cross-currency settlement risk) definition and meaning on Finance terms:
The risk that a party to a foreign exchange transaction will transfer the currency it has sold, but not receive the currency it has bought. This is a form of principal risk. See also
payment versus payment
principal risk<

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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