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

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Foreign Exchange Exposure

Table of Contents1 What is Foreign Exchange Exposure?2 Foreign Exchange Risk3 Types of Foreign Exchange Exposure3.1 Transactions Exposure3.1.1 Techniques of Managing Transaction Exposure3.1.1.1 Forward contract3.1.1.2

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Purchasing Power Parity Theory

Table of Contents1 What is Purchasing Power Parity?2 What is Purchasing Power Parity Theory?3 Absolute Purchasing Power Parity Theory3.1 Absolute PPP Theory Formula3.2 Assumption of

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Exchange Rate Determinants

Table of Contents1 What is an Exchange Rate?2 Exchange Rate Determinants2.1 Demand and supply2.2 Domestic Economic Policies2.3 Interest rate differentials2.4 Expectations and other psychological factors2.5

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International Monetary Fund

Table of Contents1 International Monetary Fund2 What is International Monetary Fund?3 Purpose of International Monetary Fund4 IMF Financial Policies and Operations4.1 Financial Assistance4.1.1 Regular IMF

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Balance of Payments (BOP)

Table of Contents1 What is Balance of Payments (BOP)?2 Balance of Payments (BOP) Definition3 Characteristics of Balance of Payments4 Components of BOP4.1 Current Account4.2 Capital

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