CURRENCY CROSS-RATE RISKS HEDGING STRATEGY IN RESPECT TO FOREIGN TRADE ACTIVITY OF ENTERPRISES
Journal Title: Інфраструктура ринку - Year 2018, Vol 17, Issue
Abstract
This article reviews the factors that influence national currency cross-rate fluctuations. It describes the aspects of cross-rate risks related to foreign trade activity of the enterprises. Also, the article reviews the theoretical aspects of the triggers for such risks and their special features at present. The algorithm for currency risks management is developed. The hedging is defined as one of the important methods of currency-related risks’ prevention and minimization. The hedging tools were classified. The most common currency cross-rate hedging tools are investigated, including the option, forwarding, futures and swap operations. Their advantages and downsides are described.
Authors and Affiliations
Yu. G. Momot, S. М. Dunaichuk
Keywords
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- EP ID EP664094
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