Hedging Strategies
Hedging refers to a technique to transfer the risk. It is used to avoid any worsening of an exchange position; an importer can hedge an international transaction by trading in…
Foreign Exchange Exposure
What is Foreign Exchange Exposure? Foreign exchange exposure is the sensitivity of the real domestic currency value of assets, liabilities, or operating incomes to unanticipated changes in exchange rates. It…
Purchasing Power Parity Theory
What is Purchasing Power Parit? Purchasing power parity (PPP) is an economic theory and a technique used to determine the relative value of currencies, estimating the amount of adjustment needed…
Exchange Rate Determinants
What is an Exchange Rate? An exchange rate is the value of one nation's currency versus the currency of another nation or economic zone. Exchange rates respond quickly to all…
Foreign Exchange Market
What is Foreign Exchange Market? The foreign exchange market or currency market is a global decentralized market for the trading of currencies. The main participants in this market are the…
Foreign Exchange Market in India
Foreign Exchange Market in India The foreign market in India has three segments. The first segment consists of transactions between RBI and the authorized dealer (AD).The second segment is the…
International Financial Markets
What is International Financial Markets? The International Financial Market are financial markets where individuals buy and sell foreign assets such as stock, Bonds, currencies. Its also a place where institutions…
World Bank
Introduction of World Bank The World Bank group is a multinational financial institution established at the end of World War II (1944) to help provide long-term capital for the reconstruction…
International Monetary Fund
International Monetary Fund The International Monetary Fund (IMF) came into official existence on December 27, 1945, when 29 countries signed its Articles of Agreement (its Charter) agreed at a conference…
What is Balance of Payments (BOP)?
What is Balance of Payments (BOP)? Balance of Payments (BOP) is an accounting system that measures all economic transactions between residents (including government) of one country and residents of all…