Market risk:Returns on the above products are dependent on movements of the underlying currencies' exchange rates. Movements in exchange rates can be unpredictable, sudden, drastic and affected by financial, economic, political factors as well as intervention by central banks or other bodies. You wi...
In order to create a comprehensive treasury management and currency strategy, the first step is to understand the different economic and business risks and evaluate their impact. Currency market risk can be attributed to a number of economic and business factors: Transactional risk Transactional risk...
Exchange rate fluctuation has a significant impact on the economic results of different economic agents. In this report two exchange rate forecast models are analyzed that are based on macroeconomic factors, such as RiskMetrics Group Inc.(RMG) (NYSE: RISK) and Krugman-and-Obstfeld models and VaR...
Simulated model performance information and results do not reflect actual trading or asset or fund advisory management and the results may not reflect the impact that material economic and market factors may have had, and can reflect the benefit of hindsight, on MFCM’s decision-making if MFCM ...
Election The 2024 election comes amid economic uncertainty influenced by key factors: Inflation and Interest Rates: Ongoing inflation since 2021 has prompted the Federal Reserve to raise rates. Interest rate changes will significantly affect currency markets, particularly the U.S. dollar’s...
When trading internationally, businesses accept that there is a natural risk arising from FX market movements. All major currencies - whether due to politics, economics or other external factors - will fluctuate against each other, creating both foreign exchange risk and opportunity for your business...
An important but age-old transmission channel of global factors into domestic prices is via exchange rate movements. This paper examines the extent and evo... A Ghosh,RS Rajan - 《Japan & the World Economy》 被引量: 135发表: 2009年 Volatility in currency markets Restates the importance of ...
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Firms evaluate factors such as the expertise and resources within the company, the complexity of the currency risks they face, and the comparative costs of each approach. Currency overlay may be preferable if the firm lacks in-house experience in currency risk management, a currency being used do...
The article is aimed at researching the theoretical-methodological and practical aspects of the bank's currency risk management. To solve the tasks set, the authors use general scientific and specific methods, in particular: logic-dialectical, mathematical and graphic. Based on generalization, analysis...