FOREIGN CURRENCY RISK HEDGING

This paper presents the traditional types of exchange rate risk faced by firms and some of principal methods of exchange risk management that a company which make foreign currency operations can use. Foreign currency risk management involves both assessing the risk faced by the companies and adoptin...

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Bibliographic Details
Main Author: Mihaela SUDACEVSCHI
Format: Article
Language:English
Published: Nicolae Titulescu University Publishing House 2017-05-01
Series:Challenges of the Knowledge Society
Subjects:
Online Access:http://cks.univnt.ro/uploads/cks_2017_articles/index.php?dir=05_economics%2F&download=CKS_2017_economics_010.pdf
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Summary:This paper presents the traditional types of exchange rate risk faced by firms and some of principal methods of exchange risk management that a company which make foreign currency operations can use. Foreign currency risk management involves both assessing the risk faced by the companies and adopting measures for the risk hedging or reduce the damage it may cause. The damages result from the company’s unfavorable difference between the exchange rates of the currencies in which the transactions are made.
ISSN:2068-7796
2068-7796