According to The Star Online, up to 80% of the group's total loans of RM7.49 billion were denominated in US dollars. At the same time, 8% of the group's total loans were denominated in euro currency. In other words, the group's total debt, denominated in US currency, is worth US$1.33 billion, costing approximately RM5.91 billion. Total debt denominated in euro currency cost about €129.8 million, or about RM610.61 million. The high composition of foreign currency debt has made the group extremely vulnerable to exchange rate risk. A sensitivity analysis conducted by CIMB Research revealed that IOI could face a loss or gain of RM148 million in exchange rate translation risk with every RM0.10 increase/decrease in the Ringgit exchange rate and US dollar. Due to substantial foreign exchange translation losses and fair value loss on derivatives loss, the company forecast second quarter 2017 net profit to decline 98% to RM15.6 million, compared to net profit in first quarter recorded at RM703. 7 million (Kok, 2017). Therefore, currency risk is considered high risk