Hedging of currency risk as constituent of bank safety

Natalia Oleksandrivna Botvina


Abstract


The theoretical and methodological and practical aspects of hedging of currency risks are investigated and analysed. A currency risk is a risk of losses in connection with the unfavorable change of cost of foreign currency in relation to currency of the state, where a bank is placed. Currency risk primarily means that the change of courses of foreign currencies can bring to the losses because of change of market value of assets and passives of bank. The processes of financial globalization, intensifications of international connections, activations of trade and financial operations which characterize development of the world economic system presently, predetermine the permanent height of trade volumes of foreign currency. The twenty – four – hour functioning of world currency market results in permanent oscillation of rates of exchange and increase of currency risk. The hedging of currency risks only starts entering the Ukrainian currency market. The barriers on their way are a low level of currency market development in general and absence of its modern infrastructure in particular.

Keywords


safety; risk; threat; currency operations; bank

Full Text:

PDF

References


Botvina, N. A., Evstunina, N. V. (2009). Insurance of currency risk in the modern terms. Tavriysky scientific announcer, 66, 247–253.

Botvina, N. A. (2009). Realization of of currency operations by commercial banks and methodology of their evaluation. Business navigator, 2 (17), 82–88.

Botvina, N. A. (2010). The financial management. Kherson.

Botvina, N. A. (2010). Currency of operations and methodology of their evaluation by the commercial banks of of Ukraine. The Banking system of the Ukraine in the conditions of globalization of financial markets: the V International scientific and practical conference (pp. 105–106). Tcherkasy.

Botvina, N. A. (2011). Problems of of insurance market. Development of economy of the Ukraine in the conditions of globalization (pp.77–79). Kharkiv.

Wikipedia. (2013). Retrieved September 15, 2013, from : http://uk.wikipedia.org/wiki/.

Primostka, L. O., Lisenuk, О. V., Chub, О. О., Chub, P. M. Karsheva, H. Т., Cheremis, V. О. (2008). Banking risks: theory and practice of management. Kyiv : KNEU.

Rudenko, L. V. (2002). Calculation and credit operations in foreign economic activity of enterprise. Кyiv : Libra.

Svechnikova, M. S. (2006). The Bank risks: range of problems and going near the management. Social and economic researches of the transition period. Eurointegration direction of the Ukraine: financial measuring, 3 (1), 296–301.

Sigailov, A. (1999). Foreign experience of collection and use of information about bank risks. Economy of the Ukraine, 1, 35–39.


Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM

Refbacks

  • There are currently no refbacks.




Copyright (c)



 

Articles are distributed under Creative Commons Attribution  International 4.0 (CC-BY-NC 4.0) 


Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa


© West Ukrainian National University

© «Ekonomichnyy analiz», 2007-2023