Exchange Rate Risk Measurement and Management : : Issues and Approaches for Firms / / Michael Papaioannou

• Autore: Papaioannou Michael
• Pubblicazione: Washington, D.C. : , : International Monetary Fund, , 2006
• Descrizione fisica: 1 online resource (22 p.)
• Soggetto topico: Foreign exchange rates - Mathematical models; Risk management - Mathematical models; Banks and Banking; Foreign Exchange; Money and Monetary Policy; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill; Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems; Financial services law & regulation; Monetary economics; Currency; Foreign exchange; Currencies; Exchange rate risk; Hedging; Foreign currency exposure; Financial risk management; Money; Foreign exchange market
• Soggetto geografico: United States
• Note generali: "November 2006".
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: ""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""
• Sommario/riassunto: 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.
• Titolo autorizzato: Exchange Rate Risk Measurement and Management
• ISBN: 1-4623-1347-7; 1-4527-8444-2; 1-283-51344-7; 9786613825896; 1-4519-0968-3
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910817456503321
• Lo trovi qui: Univ. Federico II
• Serie: IMF Working Papers; Working Paper ; ; No. 2006/255