Riding the tide: assessing South Korea’s hedging strategy through regional security initiatives

2021 ◽  
pp. 1-27
Author(s):  
Yaechan Lee
Author(s):  
Agung Mulyono

Cash management is  one of treasury’s main functions in which has a potential financial risk. A potential financial risk emerges when State Treasurer manages cash surplus and or/ shortages in order to maintain optimum liquidity. By applying Vector Autoregression (VAR) system on empirical data provided by Bank Indonesia and the Ministry of Finance of Indonesia, we found that currency value  flunctuation is a significant factor for repayment value of foreign loan. Interest rates and amount of government’s bond held by foreign investors are also variables impacted on government’s bond price movement in secondary market. Currency value  flunctuation and price of government’s bond in secondary market are the key factors that have to be considered by State Treasurer (BUN) in managing state’s money. Hedging strategy by using derivatif product is possible to be utilized by State Treasurer (BUN) due to it’s flexibility for short-term operation.   Abstrak Pengelolaan kas negara merupakan salah satu fungsi pokok perbendaharaan yang dalam proses pelaksanaannya menyimpan potensi berbagai risiko keuangan. Risiko keuangan, khususnya dalam investasi berpotensi muncul ketika Bendahara Umum Negara (BUN) melakukan kegiatan pengelolaan kelebihan dan/ kekurangan kas dalam rangka menjamin ketersediaan dan optimalisasi kas. Dengan menggunakan analisis Vector Autoregression (VAR) atas data empiris yang diperoleh dari Bank Indonesia dan Kementerian Keuangan Indonesia, penulis menemukan bahwa fluktuasi nilai tukar mata uang merupakan faktor yang signifikan terhadap besaran pembayaran utang luar negeri pemerintah. Tingkat suku bunga acuan dan pergerakan besaran kepemilikan SUN oleh investor asing juga merupakan variabel yang berpengaruh terhadap pergerakan harga SUN di pasar sekunder. Fluktuasi nilai tukar mata uang dan pergerakan harga SUN di pasar sekunder menjadi faktor penting dalam pelaksanaan investasi yang dilakukan BUN dalam rangka pengelolaan kelebihan dan/ kekurangan kas. Berdasarkan hasil tersebut, strategi pengelolaan risiko atau hedging dengan menggunakan produk-produk derivatif dalam pengelolaan kelebihan dan/ kekurangan kas jangka pendek – menengah sangat dimungkinkan karena sifat instrumen derivatif yang fleksibel.


Asian Survey ◽  
1991 ◽  
Vol 31 (4) ◽  
pp. 351-363 ◽  
Author(s):  
Devin T. Hagerty
Keyword(s):  

Author(s):  
Stefan Tibuleac

This article analyzes the most current security issues for the Republic of Moldova that are part of the regional security context of Eastern Europe –the region that can be considered the epicenter of international tensions through which the„geopolitical line of fracture”passes. The geographical position of the Republic of Moldova makes this state particularly sensitive to any negative trends in theregion. Growing of international tensions creates security threats and complicates economic development. From a historical point of view, Moldova has repeatedly fallen victim by the confrontation of the great powers. Therefore, the Republic of Moldova has a vital interest in preventing a new conflict in Eastern Europe. This article is based on a number of assumptions made by changes in the European security environment, such as the „shift of weight” to the East, strategic uncertainty, increasing the role of non-state actors, the situation in eastern Ukraine, etc. Based on these assumptions, this article makes an attempt to outline the potential role of the Republic of Moldova in the Eastern European security system, taking into account the desideratum for integration of the republic into the European Union. Other relevant factors will be taken into account for shaping the role of the Republic of Moldova in the European security system, namely: the security deficit; the impact of NATO and EU security policy; the rebirth of the project to create a regional defense alliance, etc. This article will largely take into account the military aspects of security. Keywords: Republic of Moldova, national security, Eastern Europe, NATO, Intermarium, defence, threats, risks, challenges


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