Managing Currency Risk in Terms of Floating Rates
Managing Currency Risk in Terms of Floating Rates

Summary/Abstract: Exchange rate fluctuations of a currency generate currency risk to the extent that it issued to make international transactions. These operations are subject to currency risk, as exchange rates change frequently from one period to another, and on the other hand, speculation in the foreign exchange market affect the exchange rate through interventions they perform. This paper explores a topic of great interest, especially as exchange rate fluctuations and the uncertainty regarding the future of a currency relative to major currencies is a big problem for most economic actors. Regardless of whether they are importers or exporters or have significant debt currency depreciation or appreciation causes significant losses. Proper management and active currency risk is a way to reduce the damage caused by exchange rate fluctuations.

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