This study to identify the determinants of foregone exchange risk in Ethiopian commercialrnhanks, In this study the quantitative research approach was adopted the source of data in thernstudy was secondary data collected from commercial banks and the national bank of Ethiopiarncovering the period from 2006-2010 was used, The panel data collected was statistically,rnanalyzed specifically classical linear rogation made used in the study: The findings of the studyrnshow that the quick ratio and return on equity have statistically significant relationships withrnforeign exchange risk of commercial banks, in other cases, the sizes, debt to asset ratio, andrndividend payment ratio have statistically significant relationship with commercial banksrnforeign exchange risk.