Methods for providing economic safety in business transactions in the context of currency risk
Methods for providing economic safety in business transactions in the context of currency risk

Summary/Abstract: The crisis in the financial markets has contributed to the significant downturn of the global economy in recent decades and perturbations, including the foreign exchange market. In the modern world the exchange rate has a fundamental impact on the profitability of international economic relations. The article shows the importance of currency risk for the company’s activities and management strategies that are inherent in the operation of international companies. The paper presents a conservative approach, the aim of which is to eliminate the transactional currency risk. As part of this strategy the available methods and instruments are described and analyzed by which it becomes possible to eliminate the exchange rate risk. The article describes the classification of financial instruments used to manage foreign exchange risk by companies in Poland. It analyzes the status and structure of the Polish market exchange rate risk management instruments used in economic practice.

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