IDEAS home Printed from https://ideas.repec.org/a/cmj/seapas/y2014i4p355-364.html
   My bibliography  Save this article

Managing Currency Riskintermsof Floatingrates

Author

Listed:
  • Carmen SANDU (TODERASCU)

    (Alexandru Ioan Cuza University, Iași, Romania)

  • Laurentiu DROJ

    (University of Oradea, Romania)

Abstract

Exchange rate fluctuations of a currency generate currency risk to the extent that it isused to make international transactions. These operationsare subject to currency risk, as exchange rates change frequently from one period to another, and on the other hand, speculation in the foreign exchange market affect the exchange rate through interventions they perform. This paper explores a topic of great interest, especially as exchange rate fluctuations and the uncertainty regarding the future of a currency relative to major currencies is a big problem for most economic actors. Regardless of whether they are importers or exporters or have significant debt currency depreciation or appreciation causes significant losses. Proper management and active currency risk is a way to reduce the damage caused by exchange rate fluctuations.

Suggested Citation

  • Carmen SANDU (TODERASCU) & Laurentiu DROJ, 2014. "Managing Currency Riskintermsof Floatingrates," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 4, pages 355-364, July.
    • Handle: RePEc:cmj:seapas:y:2014:i:4:p:355-364
    as

    Download full text from publisher

    File URL: http://seaopenresearch.eu/Journals/articles/SPAS_4_40.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Currency; Currency risk; Importers; Exporters; Appreciation; Depreciation;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cmj:seapas:y:2014:i:4:p:355-364. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Serghie Dan (email available below). General contact details of provider: https://seaopenresearch.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.