The Janus view: Do market participants looking into the past impact foreign exchange volatility?

2020 ◽  
Author(s):  
Smita Roy Trivedi
Keyword(s):  
Foreign Exchange ◽  
Market Participants ◽  
The Past ◽  
Foreign Exchange Volatility

Carry Trades and Global Foreign Exchange Volatility

CFA Digest ◽  
2012 ◽  
Vol 42 (3) ◽  
pp. 1-2
Author(s):  
Georgeann Portokalis
Keyword(s):  
Foreign Exchange ◽  
Foreign Exchange Volatility

Is Foreign Exchange Volatility Risk Priced?

2006 ◽  
Author(s):  
Hui Guo ◽  
Christopher J. Neely ◽  
Jason Higbee
Keyword(s):  
Foreign Exchange ◽  
Volatility Risk ◽  
Foreign Exchange Volatility

scholarly journals Туризам и привредни опоравак // Tourism and economic recovery

2014 ◽  
Vol 12 (20) ◽  
pp. 103
Author(s):  
Марко Шантић ◽  
Брано Маркић ◽  
Сања Бијакшић
Keyword(s):  
Foreign Exchange ◽  
Geographic Location ◽  
Standard Of Living ◽  
The Past ◽  
Indirect Impact ◽  
Basic Functions ◽  
Almost All ◽  
Export Industries ◽  
General Standard ◽  
New Jobs

Резиме: Сектор туризма у БиХ има позитивне трендове у свим битним показатељима раста у посљедњих десет година, међутим још увијек постоји огроман простор за даљње коришћење његовог потенцијала. Са својим природним богатствима и потенцијалом за туризам на отвореном, богатом природном и културном баштином, добрим географским положајем, међународно познатим манифестацијама, изврсном гастрономском понудом по прихватљивим цијенама и статусом још увијек непознатог туристичког одредишта за главна емитивна тржишта, БиХ има све предиспозиције за изузетно успјешан туризам. Туризам је засигурно јако значајан извор девизних средстава, те се управо из тог разлога сврстава у извозне гране које се фаворизују. За земље које су се, прије свега, издвојиле као значајне рецептивне туристичке земље на међународном туристичком тржишту, девизни прилив од туризма представља најважнију ставку прихода у платном билансу и веома снажан фактор укупног развоја привреде. Туризам представља изузетно важну компоненту националне економије. Сектор је чији се значај не може прецизно квантификовати управо зато што је повезан са скоро свим аспектима друштва. Једна од основних функција туризма је што директно и индиректно утиче на раст бруто домаћег производа. Упоредо са јачањем његовог економског аспекта подстиче се запошљавање, утиче на отварање нових радних мјеста што се одражава на побољшање општег животног стандарда. На јединствен начин подстиче развој неких од комплементарних дjелатности и доприноси укупном БДП-у.Summary: Tourist sector in BiH has positive trends in all important growth indicators in the past decade, however, the space for using further its potential is still huge. With its natural resources and potential for outdoors tourism, rich natural and cultural heritage, good geographic location, internationally known events, excellent cuisine for reasonable prices and status of a still unknown tourism destination for main tourist generating markets, BiH has all predispositions for exceptionally successful tourism. Tourism is, certainly, a very important source of foreign exchange and for this reason is classified in favored export industries. For countries which, first of all, are outstanding as significant receptive tourism countries on the international tourism market, foreign exchange inflow from tourism represents the most important item of revenue in the balance of payment and a very strong factor in overall economic development.Tourism is an extremely important component of the national economy. It is a sector whose importance cannot be quantified precisely since it is related to almost all aspects of the society. One of the basic functions of tourism is its direct and indirect impact on the growth of gross domestic product. Along with the strengthening of its economic aspect the employment is being encouraged, affects creating new jobs which is reflected in the improvement of general standard of living. In a unique way it encourages development of other complementary activities and contributes to the overall GDP. 

The impact of exchange volatility exposure on firms’ foreign-denominated debts

2019 ◽  
Vol 57 (11) ◽  
pp. 3035-3060 ◽  
Author(s):  
Yujuana Min ◽  
Oh Suk Yang
Keyword(s):  
Risk Management ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Management Strategies ◽  
Foreign Exchange Risk ◽  
Content Type ◽  
Exchange Risk ◽  
Foreign Exchange Exposure ◽  
Foreign Exchange Volatility ◽  
Exchange Risk Management

Purpose This research began by acknowledging that conventional analysis on the foreign exchange exposure could not adequately reflect firms’ risk management strategies, which firms take actions against uncertainties raised by foreign exchange. In order to conceptualize uncertainty aroused by foreign exchange, the purpose of this paper is to develop an index that could measure corporate profits’ sensitivity to foreign exchange uncertainty and examine its possibility of utilization. Design/methodology/approach As an alternative to foreign exchange exposure, the present research derived the foreign exchange volatility exposure and analyzed the determinants of foreign currency-denominated debt in terms of foreign exchange volatility exposure. The foreign exchange volatility exposure draws from partially differentiating a firm’s operating profits to the exchange rate volatility. Findings The major findings are as follows. First, before the Asian financial crisis, South Korean enterprises had similar responses to the exchange volatility exposure as compared with the exchange exposure on procuring foreign-denominated debt. Second, since the global financial crisis (GFC), not only have Korean firms’ response mechanisms to both exposures changed, but also the significance of exchange volatility exposure has been further emphasized. Furthermore, Korean companies have dealt with exchange uncertainties by decreasing foreign-denominated debt as their foreign exchange volatility exposure increased after GFC. In contrast, the influence of conventional exchange exposure on foreign-denominated debt has diminished. Research limitations/implications Future research should focus on several points. First, additional research could extend to foreign investors who have divergent perception and consideration in regard to foreign exchange risk management. Second, research on decision making and motivation in foreign currency choice should be conducted in order to deepen academic understanding. Third, research that refines the variables added in the current research should be conducted. Finally, as a way to manage foreign exchange volatility exposure, further investigation based on this study is possible. Practical implications The results of this study have several important theoretical and empirical implications for companies’ foreign exchange risk management strategy. First, through foreign exchange volatility exposure, which can usefully take over the role of the existing foreign exchange exposure, the authors can confirm market uncertainty as being relevant to the foreign exchange risk management strategy. Second, through the financial influence that the foreign exchange volatility exposure has on the foreign currency-denominated debt, the authors can observe the Korean firms’ paradigm shifts in their foreign exchange risk management strategies. Originality/value This research confirms the importance of foreign exchange volatility exposure in the research works dealing with firms’ exchange risk management, also the possible influence of foreign exchange volatility exposure in the future might be increased as uncertainty is raised from foreign exchange escalating.

scholarly journals Trends and volatility in sub Saharan Africa’s key primary commodity exports

2013 ◽  
Vol 10 (1) ◽  
pp. 116-129 ◽  
Author(s):  
Matthew Ocran ◽  
Nicholas Biekpe
Keyword(s):  
Crude Oil ◽  
Foreign Exchange ◽  
New Products ◽  
Price Volatility ◽  
Sub Saharan Africa ◽  
Value Addition ◽  
Agricultural Commodity ◽  
Primary Commodity ◽  
The Past ◽  
Sub Saharan

Using a GARCH model the paper sought to test the hypothesis that price volatility of key Sub Saharan Africa primary commodity exports, have not changed over the past four decades. Whilst crude oil, aluminium, cocoa and six others have not experienced significant change in price volatility over the period, nine other major commodities recorded changes. Efforts need to be made to extensively diversify the portfolio of agricultural commodity exports by including new products of which price volatilities in the past decades have been reduced. This is crucial for countries that depend on up to three primary commodities for the bulk of their foreign exchange earnings. Other measures such as value addition can also help in reducing impacts of unfavourable price movements.

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