scholarly journals The Determinants of Foreign Currency Hedging by UK Non-Financial Firms

2003 ◽  
Author(s):  
Amrit Judge
Keyword(s):  
Foreign Currency ◽  
Currency Hedging ◽  
Financial Firms

scholarly journals THE ROLE OF CURRENCY HEDGING ON FIRM PERFORMANCE: A PANEL DATA EVIDENCE IN INDONESIA

2015 ◽  
Vol 17 (3) ◽  
pp. 279-298
Author(s):  
Fiskara Indawan ◽  
Sri Fitriani ◽  
Indriani Karlina ◽  
Melva Viva Grace
Keyword(s):  
Foreign Currency ◽  
Foreign Debt ◽  
Currency Hedging ◽  
Financial Firms ◽  
Currency Market ◽  
Increase Risk ◽  
Currency Mismatch ◽  
And Performance ◽  
Derivative Market

This paper analyzes the role of currency hedging on non-financial firm’s performance. Most firms on the sample have anticipated the currency mismatch risk by balancing the ratio of foreign debt to their asset  fenominated in foreign currency. Using panel estimation, we find that there is no evidence of currency hedging activities to affect capital and performance of firms. The result underlines the low intensity of currency hedging activities due to lack of incentives, which is inline with the low derivative transaction within the underdeveloped foreign currency market. This finding may raise a concern since currently the development of foreign liabilities for non-financial firmsin Indonesia is increasing in significant level, as well as the increase risk of domestic currency depreciation. For these reasons, Bank Indonesia should take proactive policies to deepen foreign currency market as well as derivative market by providing a more comprehensive and market friendly hedging instruments to banks and non-financial firms, while keep promoting the benefit of currency hedging.Keywords: Hedging, derivative market, foreign liability.JEL Classification: F31, G31

scholarly journals Mitigating Systemic Spillovers from Currency Hedging

2012 ◽  
Vol 221 ◽  
pp. R44-R56 ◽  
Author(s):  
Kyuil Chung ◽  
Hail Park ◽  
Hyun Song Shin
Keyword(s):  
Currency Crises ◽  
Banking Sector ◽  
Foreign Currency ◽  
Financial Institution ◽  
Financial System ◽  
Public Institution ◽  
Main Role ◽  
Short Term ◽  
Currency Hedging ◽  
Dollar Debt

Korea has been a forerunner in incorporating macroprudential policies to mitigate the vulnerabilities from currency crises that can turn into a more generalised liquidity crisis. This paper examines longer-term design issues for a more resilient and stable financial system that could be expected to complement the existing macroprudential measures in achieving a more stable financial system. In particular, the paper examines the rationale and mechanics of a new public financial institution, provisionally called the Exchange Stabilisation and Guarantee Corporation (ESGC) whose main role is to buy dollar forward positions from Korean exporting companies who wish to hedge the currency exposure from long-term export orders. The ESGC is intended to mitigate the risks arising from the reliance on the role of the banking sector in providing currency hedging services to exporters. Rapid growth of short-term foreign currency denominated debt has been the result of banks receiving forward dollar sales by exporters, and then hedging the long dollar position by borrowing short in dollars. A public institution that can buy dollars forward, but which is designed so that there is no need to hedge by taking short dollar debt, can mitigate the rapid increase in short-term dollar debt in booms.

scholarly journals Foreign Currency Hedging Case Study: Jacques Couture, Inc.

2021 ◽  
Vol 04 (08) ◽  
pp. 48-58
Author(s):  
Prof. Ronald Richter ◽  
Prof. Arthur S. Guarino ◽  
Joshua Schupak
Keyword(s):  
Foreign Currency ◽  
Currency Hedging
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