Hedging of currency risk as constituent of bank safety

Natalia Oleksandrivna Botvina


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.


safety; risk; threat; currency operations; bank

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Science Works Journal "Ekonomichnyy analiz"

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

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