How to Manage Foreign Exchange Risk

Howto risk-proof your business against exchange rate fluctuationsGiventhe increasingly global nature of business and investments, fluctuations inforeign exchange or forex rates now impact a vast number of businessesaffecting as they do both profits and investment decisions of importers andexporters, multinational businesses, bankers and international investors. Inaddition, even a domestic business can face risks to its profits and marketshare as a result of fluctuations in foreign currency prices.

Inthis book, a vastly experienced banker and financial expert shows how you canrisk-proof your business and profits against adverse exchange rate fluctuations,highlighting:

• Factors that determine exchange rates;
• How to make sense of forex rate quotations;
• Forward rates: forward differential, premium / discount, forward rate quotations;
• Types of forex contracts, including long-term forward contracts;
• Foreign exchange transactions: different ways you can receive or remit forex;
• Foreign exchange risks: what they are and how you can control them using swaps, forward rate agreements, futures and options, etc.;
• How to forecast forex rates;
• Plus, a glossary of important forex terms.
• Manybusiness professionals mistakenly consider foreign exchange to be a complex andarcane topic. Assuming no real prior knowledge, this book demystifies thesubject making it easily understandable. The authors thrust is on clarity andusefulness; his goal to help you understand how you can protect yourbusiness and profits from the risks of adverse foreign exchange fluctuations. RAGHU PALAT isone of Indias leading writers on banking, finance and investments. He has written overthirty extremely well received books. A career banker, Mr. Palat has held verysenior positions with multinational banks in India and abroad. Raghu Palat is presently a consultant to several banks and alsoruns a dedicated finance portal.