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1 exchange rate risk
Finthe risk of suffering loss on converting another currency to the currency of a company’s own country.EXAMPLEExchange rate risks can be arranged into three primary categories. (1.) Economic exposure: operating costs will rise due to changes in rates and make a product uncompetitive in the world market. Little can be done to reduce this routine business risk that every enterprise must endure. (2.) Translation exposure: the impact of currency exchange rates will reduce a company’s earnings and weaken its balance sheet. To reduce translation exposure, experienced corporate fund managers use a range of techniques known as currency hedging. (3.) Transaction exposure: there will be an unfavorable move in a specific currency between the time when a contract is agreed and the time it is completed, or between the time when a lending or borrowing is initiated and the time the funds are repaid. Transaction exposure can be eased by factoring: transferring title to foreign accounts receivable to a third-party factoring house.Although there is no definitive way of forecasting exchange rates, largely because the world’s economies and financial markets are evolving so rapidly, the relationships between exchange rates, interest rates, and inflation rates can serve as leading indicators of changes in risk. These relationships are as follows. Purchasing Power Parity theory (PPP): while it can be expressed differently, the most common expression links the changes in exchange rates to those in relative price indices in two countries:Rate of change of exchange rate = Difference in inflation ratesInternational Fisher Effect (IFE): this holds that an interest-rate differential will exist only if the exchange rate is expected to change in such a way that the advantage of the higher interest rate is offset by the loss on the foreign exchange transactions. Practically speaking, the IFE implies that while an investor in a low-interest country can convert funds into the currency of a high-interest country and earn a higher rate, the gain (the interest rate differential) will be offset by the expected loss due to foreign exchange rate changes. The relationship is stated as:Expected rate of change of the exchange rate = Interest-rate differentialUnbiased Forward Rate Theory: this holds that the forward exchange rate is the best unbiased estimate of the expected future spot exchange rate.Expected exchange rate = Forward exchange rate -
2 currency hedging
Fina method of reducing exchange rate risk by diversifying currency holdings and adjusting them according to changes in exchange rates -
3 exchange
I1. E-comthe main type of business-to-business marketplace. The B2B exchange enables suppliers, buyers, and intermediaries to come together and offer products to each other according to a set of criteria. B2B Web exchanges provide constant price adjustments in line with fluctuations of supply and demand. In E2E or “exchange-to-exchange” e-commerce, buyers and sellers conduct transactions not only within exchanges but also between them.2. Finthe conversion of one type of security for another, for example the exchange of a bond for sharesII1. to trade one currency for another2. to barter -
4 currency risk
Fin [m1]1. the risk that a currency used for a transaction may lose value2. the possibility of a loss or gain due to future changes in exchange rates -
5 Currency Resilience Trading
Stock Exchange: CRTУниверсальный русско-английский словарь > Currency Resilience Trading
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6 Currency Transaction Report
Stock Exchange: CTRУниверсальный русско-английский словарь > Currency Transaction Report
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7 currency unit
Econeach of the notes and coins that are the medium of exchange in a country -
8 exchange rate
Finthe rate at which one country’s currency can be exchanged for that of another -
9 exchange rate spread
(U.K.) Finthe difference between the price at which a broker or other intermediary buys and sells foreign currency -
10 Singapore Foreign Exchange Market Committee
Currency operations: SFEMCУниверсальный русско-английский словарь > Singapore Foreign Exchange Market Committee
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11 revaluation of currency
Finan increase in the value of a currency in relation to others. In situations where there is a floating exchange rate, a currency will normally find its own level automatically but this will not happen if there is a fixed exchange rate. Should a government have persistent balance of payment surpluses, it may exceptionally decide to revalue its currency, making imports cheaper but its exports more expensive. -
12 foreign exchange option
Fina contract which, for a fee, guarantees a worst-case exchange rate for the future purchase of one currency for another. Unlike a forward transaction, the option does not obligate the buyer to deliver a currency on the settlement date unless the buyer chooses to. These options protect against unfavorable currency movements while allowing retention of the ability to participate in favorable movements. -
13 hard currency
Econa currency that is traded in a foreign exchange market and for which demand is persistently high relative to its supply. -
14 blocked currency
Fina currency that people cannot easily trade for other currencies because of foreign exchange control -
15 Global Funds Exchange
Banking: GFX (a software application that fecilitates wire transfers involving the exchange of two different types of currency)Универсальный русско-английский словарь > Global Funds Exchange
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16 Moscow Interbank Currency Exchange
Stock Exchange: MICEXУниверсальный русско-английский словарь > Moscow Interbank Currency Exchange
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17 blocked exchange
блокированная валюта.Вводимое правительственными органами валютное ограничение, запрещающее приобретение переводных векселей (bill of exchange), наличных денег либо оборотных средств в иностранной валюте без соответствующего на то разрешения. Препятствует вывозу из страны иностранных валютных резервов и осуществлению внешней торговли, поскольку местные импортеры не в состоянии получить в свое распоряжение валютных средств, достаточных для покрытия расходов по импорту. В ряде случаев финансовые обязательства по импорту выполняются путем внесения в банк (bank) средств в национальной валюте (currency) на счет иностранного экспортера, который затем ожидает отмены валютных ограничений либо использует причитающиеся ему поступления на внутреннем рынке страны-импортера, например, для закупки и экспорта товаров местного производства.English-Russian explanatory dictionary of the external economic terms > blocked exchange
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18 fixed exchange rate system
Fina system of currency exchange in which there is no change of rateThe ultimate business dictionary > fixed exchange rate system
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19 flexible exchange rate system
Fina system of currency exchange in which rates change from time to timeThe ultimate business dictionary > flexible exchange rate system
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20 spot exchange rate
Finthe exchange rate used for immediate currency transactions
См. также в других словарях:
Золотовалютные резервы (Gold and exchange currency reserves) — государственные запасы золота и иностранной валюты, хранящиеся в центральном банке, а также принадлежащие государству золото и иностранная валюта, находящаяся в международных валютно кредитных организациях. Словарь терминов и сокращений рынка… … Финансовый словарь
exchange — [eks chānj′, ikschānj′] vt. exchanged, exchanging [ME eschaungen < OFr eschangier < VL * excambiare: see EX 1 & CHANGE] 1. a) to give, hand over, or transfer (for another thing in return) b) to receive or give another thing for (something … English World dictionary
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exchange standard — system in which it is possible to exchange currency in conjunction with their currency exchange rate … English contemporary dictionary
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Currency intervention — is the buying or selling of currency by central banks in an attempt to manipulate the price of a particular currency. Contents 1 Japanese Yen 2 Chinese Yuan 3 United States and the Great Depression … Wikipedia
Currency ETF — Exchange traded funds (ETFs) invested in a single currency or basket of currencies. Currency ETFs aim to replicate movements in currency in the foreign exchange market by holding currencies either directly or through currency denominated short… … Investment dictionary
currency exchange — UK US noun ► [C] MONEY an office where you can change one currency into another: »There are currency exchanges and ATMs in most big towns and cities. ► [U] MONEY, FINANCE the process of changing one currency into another: »Your card issuer or… … Financial and business terms
