UPRAVLJANJE TRANSAKCIONOM IZLOŽENOŠĆU RIZIKU DEVIZNOG KURSA U MEĐUNARODNOM POSLOVANJU – MOGUĆNOSTI PRIMENE U SRBIJI
MANAGING TRANSACTION EXPOSURE TO FOREIGN EXCHANGE RISK IN INTERNATIONAL BUSINESS – APPLYING POSSIBILITIES IN SERBIA

Summary/Abstract: Transactional exposure exists when the anticipated future cash transactions of a firm are affected by exchange rate fluctuations. This text focuses on the management of transactional exposure. By managing transactional exposure, financial managers my be able to increase cash flows and enhance the value of their companies. Serbia is a country in the advanced transition becoming more open to other markets, which requires the use of all more sophisticated financial instruments in business to reduce the risk due to the unpredictability of market. Mechanism that is used in the function of reducing the risk of foreign exchange rate in the financial markets of developed countries is currency hedging. A currency derivative is the contract whose price is partially derived from the value of the underlying currency that is represents.Results of research showed that domestic importers/exporters insufficiently use existing financial derivatives (basically forwards and swaps)when managing currency risk. The aim of this work is to highlight the potentials and importance of forwards and swaps usage in currency risk hedging for Serbian import/export companies.

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