External hedging techniques
Foreign exchange risk management

Add to my library

AG1324 V1 Article

External hedging techniques
Foreign exchange risk management

Author : Jacques DUBOIN

Publication date: October 10, 2013 | Lire en français

Add to my library Add to my library

Logo Techniques de l'Ingenieur You do not have access to this resource.
Request your free trial access! Free trial

Already subscribed?

2. External hedging techniques

Thanks to the freedom of foreign exchange, banks have developed a number of techniques to cover international trade operators against foreign exchange risk:

  • forward exchange contracts ;

  • foreign currency loans ;

  • currency swaps ;

  • currency options.

2.1 Forward exchange contracts

Interest

To hedge all fixed-term payment or receipt transactions against currency fluctuations.

A forward exchange contract is a purchase or sale of foreign currencies at a guaranteed rate on a specific date (figure

You do not have access to this resource.
Logo Techniques de l'Ingenieur

Exclusive to subscribers. 97% yet to be discovered!

You do not have access to this resource. Click here to request your free trial access!

Already subscribed?

Article included in this offer

"Industrial management"

( 72 articles )

Complete knowledge base

Updated and enriched with articles validated by our scientific committees

Services

A set of exclusive tools to complement the resources

View offer details
Contact us
Contact our team FAQ