Defining the Significant Factors of Currency Exchange Rate Risk by Considering Text Mining and Fuzzy AHP

Abstract In recent years, the Court of Justice of the European Union has issued a number of judgments addressing the issue of consumer protection in connection with the use of unfair terms by banks in loan agreements indexed with a foreign currency exchange rate. Most of them have concerned issues of exchange rate risk and exchange rate differences between the purchase and sale rates of a given currency applied by the bank. This article analyzes the recent ruling by the Court of Justice of the European Union in the Dziubak case, which was initiated by referring questions for a preliminary ruling by a Polish court. The article’s purpose is to assess the position taken by the cjeu in this respect and its significance for consumers in Poland. Particular attention was paid to the considerations with regard to the possibility of replacing unfair provisions with general provisions and assessing the consumer’s awareness of the consequences of declaring a contract invalid. The aim is to examine the issues that were dealt with by the Court of Justice of the European Union in the Dziubak case, including – in particular – the answer to the question of whether the issues discussed by the cjeu had already been considered in its previous jurisprudence and whether it presents new, previously unknown legal consequences of the inclusion of unfair contract terms in loan agreements.

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Financial impact of using EUR call options to hedge accounts receivables

The Business and Management Review ◽

10.24052/bmr/v12nu01/art-01 ◽

2021 ◽

Vol 12 (01) ◽

Author(s):

Dr. Kenneth B. McEwan ◽

Keyword(s):

Supply Chain ◽

Exchange Rate ◽

Financial Risk ◽

Foreign Currency ◽

Exchange Rate Risk ◽

Financial Loss ◽

Call Options ◽

Currency Exchange ◽

Rate Risk ◽

Financing Costs

International business has grown rapidly in recent years as companies seek to take advantage of expanding supply chain opportunities. As companies enter into contracts to take advantage of engineering, production, and cost reduction capabilities of the global supply chain, they may be creating a foreign currency exchange rate risk. The quantitative study examined the 60-day EUR/USD exchange rate fluctuation and the use of currency call options to hedge the risk associated with EUR/USD currency fluctuations. The researcher analyzed 13 years of historical EUR/USD currency data and 10 years of actual EUR call options premiums for this research paper. The researcher concluded that the variability of the EUR/USD over 60-days does pose financial risk to a company. The study also found that using currency call options to hedge this 60-day exchange rate risk resulted in an overall transactional financial loss as compared to no hedging. However, research studies have shown that the use of hedging instruments to smooth financial results may result in lower overall financing costs which could offset the hedging transactional costs. This study did not address the benefits of the use of hedging to smooth financial results or obtain other related financial benefits. The researcher recommends that a firm should recognize the exchange rate risks it may be establishing within 60-day EUR or USD payable contracts and develop an appropriate hedging strategy.

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Effect of Exchange Rate Risk in the Market Value of Banks Stocks

Iraqi Administrative Sciences Journal ◽

10.33013/iqasj.v1n3y2017.pp145-178 ◽

2017 ◽

Vol 1 (3) ◽

pp. 145-178

Author(s):

Hisham Talaat Abdel Hakim ◽

Shakir Mohsin Saber Alwahili

Keyword(s):

Exchange Rate ◽

Foreign Currency ◽

Market Value ◽

Exchange Rate Risk ◽

Correlation Relationship ◽

The Public ◽

Currency Exchange ◽

Exchange Rate Fluctuations ◽

Currency Exchange Rates ◽

Rate Risk

The research aims to study the nature of relationship between the risks of fluctuations in currency exchange rates and fluctuation in the market value of banks stocks of the research sample, In order to prove the hypothesis two indicators were chosen,the indices of exchange rate risk and the market value of common stocks were selected , period of (42) months ,extending from January (2014) until June (2017), was chosen, The research reached anumber of conclusion, but the most important is that the existence of correlation relationship and the affect of statistical significane pevails between the risks of exchange rate fluctuations and the market value of banks stock the sample of the study, Finally, the research recommends that the Iraqi banking departments work to diversify their banking services to the public and not only to their revenues derived from the sale of foreign currency only.

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Exchange Rate Risk Related to MICEX and RTS Indices

Journal of Business and Economics ◽

10.15341/jbe(2155-7950)/07.06.2015/014 ◽

2015 ◽

Vol 6 (7) ◽

pp. 1375-1383

Author(s):

Hana Florianová ◽

Barbora Chmelíková

Keyword(s):

Exchange Rate ◽

Exchange Rate Risk ◽

Rate Risk

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ANALISIS EKSPOSUR EKONOMI DAN FAKTOR-FAKTOR YANG MEMPENGARUHINYA PADA PERUSAHAAN ROKOK YANG TERCATAT DI BEI

Wahana ◽

10.35591/whn.v21i2.144 ◽

2019 ◽

Vol 21 (2) ◽

pp. 98-109

Author(s):

Ida Musdafia Ibrahim ◽

Arif Haryono

Keyword(s):

Exchange Rate ◽

Exchange Rates ◽

Cash Flow ◽

Firm Value ◽

Tobacco Industry ◽

Cash Flows ◽

Least Square ◽

Exchange Rate Risk ◽

Positive Effects ◽

Rate Risk

This study aims to analyze economic exposures and its factors namely exchange rates and inflation, that influence firm value as reflected through firm cash flow. Analytical method used Ordinary Least Square and eviews as analytical tool. This study used secondary data and cigarette industry companies listed on the Indonesia Stock Exchange as samples along 2008 to 2017. Samples choosing method used purposive sampling based on determined criterias. The results showed that partially economic exposure had positive effects on firm value but insignificant. These could be seen from the economic exposure factors influncenced namely exchange rates and inflations.The exchange rate risk has low influenced cash flow was caused of the tobacco industry has low level of export/import.Enhance,inflation also had low effect on cash flow was caused of the tendency of cigarette consumers will continue to buy cigarettes even though its price increases. In short, economic exposure in the tobacco industry has low influence toward firms value. Hence, simultaneously changes in exchange rates and inflation which are economic exposure indicators have a significant effect on cash flows. Keywords: Economic Exposure, Exchange Rate Risk, Inflation Risk, Firms Value, Cash Flow

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