04811oam 22011414 450 991078841060332120230828232727.01-4623-1347-71-4527-8444-21-283-51344-797866138258961-4519-0968-3(CKB)3360000000443581(EBL)3014362(SSID)ssj0000940773(PQKBManifestationID)11494012(PQKBTitleCode)TC0000940773(PQKBWorkID)10955748(PQKB)11769093(OCoLC)698585583(MiAaPQ)EBC3014362(IMF)WPIEE2006255(EXLCZ)99336000000044358120020129d2006 uf 0engur|n|---|||||txtccrExchange Rate Risk Measurement and Management : Issues and Approaches for Firms /Michael PapaioannouWashington, D.C. :International Monetary Fund,2006.1 online resource (22 p.)IMF Working Papers"November 2006".1-4518-6515-5 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. DEFINITION AND TYPES OF EXCHANGE RATE RISK""; ""III. MEASUREMENT OF EXCHANGE RATE RISK""; ""IV. MANAGEMENT OF EXCHANGE RATE RISK""; ""V. HEDGING INSTRUMENTS FOR MANAGING EXCHANGE RATE RISK""; ""VI. HEDGING PRACTICES BY U.S. FIRMS""; ""VII. CONCLUDING REMARKS""; ""REFERENCES""Measuring and managing exchange rate risk exposure is important for reducing a firm's vulnerabilities from major exchange rate movements, which could adversely affect profit margins and the value of assets. This paper reviews the traditional types of exchange rate risk faced by firms, namely transaction, translation and economic risks, presents the VaR approach as the currently predominant method of measuring a firm's exchange rate risk exposure, and examines the main advantages and disadvantages of various exchange rate risk management strategies, including tactical versus strategical and passive versus active hedging. In addition, it outlines a set of widely accepted best practices in managing currency risk and presents some of the main hedging instruments in the OTC and exchange-traded markets. The paper also provides some data on the use of financial derivatives instruments, and hedging practices by U.S. firms.IMF Working Papers; Working Paper ;No. 2006/255Foreign exchange ratesMathematical modelsRisk managementMathematical modelsBanks and BankingimfForeign ExchangeimfMoney and Monetary PolicyimfFinancing PolicyimfFinancial Risk and Risk ManagementimfCapital and Ownership StructureimfValue of FirmsimfGoodwillimfMonetary SystemsimfStandardsimfRegimesimfGovernment and the Monetary SystemimfPayment SystemsimfFinancial services law & regulationimfMonetary economicsimfCurrencyimfForeign exchangeimfCurrenciesimfExchange rate riskimfHedgingimfForeign currency exposureimfFinancial risk managementimfMoneyimfForeign exchange marketimfUnited StatesimfForeign exchange ratesMathematical models.Risk managementMathematical models.Banks and BankingForeign ExchangeMoney and Monetary PolicyFinancing PolicyFinancial Risk and Risk ManagementCapital and Ownership StructureValue of FirmsGoodwillMonetary SystemsStandardsRegimesGovernment and the Monetary SystemPayment SystemsFinancial services law & regulationMonetary economicsCurrencyForeign exchangeCurrenciesExchange rate riskHedgingForeign currency exposureFinancial risk managementMoneyForeign exchange marketPapaioannou Michael1462126DcWaIMFBOOK9910788410603321Exchange Rate Risk Measurement and Management3802242UNINA