Debt management, whether at the domestic or international level, is part of the company’s armoury of techniques which is designed to maximize the pr....
Debt Markets can be categorized along three other dimensions: Intermediated versus non intermediated, Internal versus external, and Domestic versus....
Financial markets are markets for financial assets or liabilities. A useful way to categorize financial market is according to maturity.....
As part of a series of encouragement to exporters, government agencies in many countries offer their business insurance against export credit risk and....
Britain exporter may decide to cover despite an uncertain payment date via a forward option. Forward market has the maturity period for making payment....
External techniques of exposure management resort to contractual relationships outside of a group of companies in order to reduce the risk of foreign ....
A firm with receivables and payables in diverse currency can net out its exposure in each currency by matching receivables with payables. Thus a firm ....
Internal techniques embrace Netting, Matching, Leading and Lagging, pricing policies and Assets and Liability management.....
Management of foreign exchange exposure is an integral part of the treasury function in the multinational company. Rational decision taking presuppose....
If risk management is to be logically justified in financial terms, there has to be a positive answer to the question. Will exposure management increa....
According to the theories of exchange rate movements show that the four way equivalence of foreign exchange exposure and how will reduce the risks on ....
The accounting professions in the USA, Britain and in many other advanced countries now have most identical rules for accounting for foreign currencie....
Foreign exchange risk concerns risks created by changes in foreign currency levels. An asset, liability or profit or cash flow stream, whether certain....
Exchange rates are quoted in terms of number of units of foreign currency bought for one unit of home currency that is $1. The method of quoted foreig....
The term Spot exchange refers to the class of foreign exchange transaction which requires the immediate delivery or exchange currency on the spot. In ....
Every country has a currency different from others. There is no common medium of exchange. It is this feature that distinguishes international trade f....
The equilibrium rate of exchange is the normal rate below and above which the market rate of exchange fluctuates. There are a number of influences, wh....
The foreign exchange market performs mainly three functions....