scholarly journals The Requisite Knowledge for Construction Professionals in the Middle East Regarding Foreign Exchange Currency Fluctuation Risk The Requisite Knowledge for Construction Professionals in the Middle East Regarding Foreign Exchange Currency Fluctuation Risk

2020 ◽  
Author(s):  
Haitham Almsaeed
Keyword(s):  
Middle East ◽  
Construction Industry ◽  
Foreign Exchange ◽  
Global Economy ◽  
Foreign Currency ◽  
Operating Performance ◽  
Oil Prices ◽  
Currency Exchange ◽  
Exchange Rate Movements ◽  
The Impact

Construction is commonly known as a high-risk business; the risks and uncertainties associated with construction activities are usually higher and more dynamic than any other industry. One of the risks imposed on the firms working abroad is related to the impact of currency fluctuation on operating performance. In the Middle East, the data collected on the ground indicate that many construction professionals, including estimators and cost controllers, either lack the necessary related knowledge or they tend to pay insufficient attention to this critical risk in their projects. Because of the unstable global economy, a decreasing pipeline of new opportunities due to the deterioration of oil prices, and the more laborious and lengthy payment terms enforced in contracts across the Middle East, exchange rate movements play an increasing role in the contractors performance. Those who work in this region have begun to realise the challenges associated with managing the foreign currency exchange (FOREX) fluctuation risk. This article provides an overview of the currency fluctuation risk within the context of the construction industry, identifies the associated challenges and attempts to offer a framework for the regional companies that could mitigate the FOREX risk.

scholarly journals The Impact of Interest Rate Changes on the Islamic Foreign Exchange Forward in the Malaysian Derivative Market

2020 ◽  
Author(s):  
Nor Azmah Md. Arif ◽  
Ruhaini Muda ◽  
Md. Mahmudul Alam ◽  
Saadiah Mohamad
Keyword(s):  
Interest Rate ◽  
Foreign Exchange ◽  
Risk Taking ◽  
Trading Volume ◽  
Foreign Currency ◽  
Medium Term ◽  
Currency Exchange ◽  
Main Challenge ◽  
Short Run ◽  
The Impact

Islamic foreign exchange forward plays a significant role to mitigate various foreign currency exchange risks. The main challenge that impedes the development and operation of the Islamic foreign exchange forward as a hedging instrument is the behaviour of relying on existing conventional framework with core conception of relying on interest rate and excessive risk taking. This study utilized monthly data from April 2004 to October 2017 of the Malaysian derivatives market. This study found that in the absence of an alternative profit-rate related benchmark and cross border activities, Islamic banks are constrained to use the interest rate benchmark. In the short run, both medium term (6-months) and longer term (12-months) tenures indicate faster speed of adjustment possibility due to higher trading volume and less demand for the medium term for the Islamic foreign exchange forward contract. It implies a need of the Islamic foreign exchange forward as a longer-term hedging instrument and not for a short term speculation and risk-taking purposes, as prohibited by shariah.

scholarly journals The global economy and its influence on the Slovak construction sector

2010 ◽  
Vol 18 (1) ◽  
pp. 17-23
Author(s):  
E. Jankovichová
Keyword(s):  
Construction Industry ◽  
Global Economy ◽  
Communication Channels ◽  
Organization Structure ◽  
Construction Sector ◽  
Construction Companies ◽  
Control Procedures ◽  
Management Approaches ◽  
And Control ◽  
The Impact

The global economy and its influence on the Slovak construction sectorFor the construction industry, globalization is a trend that means two things: many opportunities and many threats. In the conditions of globalization many management approaches, such as organization structure, strategy forming, planning, motivation and control procedures, communication channels, risk management, etc., must transform. The aim of the paper is to analyze the influence of globalization on the construction industry in Slovakia and identify the impact of globalization on construction companies in this area.

Economic Slowdown and the Indian Corporate Sector

2009 ◽  
Vol 34 (3) ◽  
pp. 53-58
Author(s):  
Avinash Paranjape
Keyword(s):  
Global Economy ◽  
Foreign Currency ◽  
Contagion Effect ◽  
Corporate Sector ◽  
Related Services ◽  
Global Recession ◽  
The Face ◽  
Indian Banks ◽  
The Impact ◽  
Financial Issues

In the face of the complexities created by the turbulence, volatility, and uncertainty in the global economy, the Indian corporate sector finds itself in a state of flux. Avinash Paranjape sees the impact of the global crisis on the Indian industry as a contagion effect, being in the form of a slowdown. From the study emerge four distinct patterns of the effect of the slowdown on Indian firms. While the firms exposed to foreign currency have become victims of volatility, those in the IT-related services faced export blues. The firms in the financial and real estate sectors experienced the burst bubble syndrome, whereas the acquirers faced multiple financial issues. Despite the prevalence of pockets of weakness, in general, the author finds the Indian banks, financial institutions, and the corporate sector as strong and less exposed to the vagaries of the global recession

Non-Usury Bank Corporation (NUBankCo): The Solution to Islamic Banking

2019 ◽  
Vol 2 (1) ◽  
pp. 53-66
Author(s):  
Bijan Bidabad
Keyword(s):  
Corporate Governance ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Financial Institution ◽  
Precious Metals ◽  
Behavioral Model ◽  
Islamic Banking ◽  
Currency Exchange ◽  
Financial Characteristics ◽  
Conventional Banks

In this paper, we are going to introduce a new Islamic financial institution with elaborated economic and financial characteristics. «Non-Usury Bank Corporation» (NUBankCo) is defined in a way that depositors are the shareholders of the Bank. This corporation is a new kind of shared ownership corporation which its shareholders are deposit holders and their deposits work as corporation’s equities. The defined bank can perform non-usury operations, and by designing a behavioral model, it is shown that NUBankCo can draw an environment that the welfare of society is to be maximized. Mobility of deposit resources in NUBankCo is less than conventional banks, and there are fewer conflicts between large and small shareholders/depositors and limits the emergence of shareholders’ cartels and thus huge sudden outflow of funds which creates bankruptcy crises.OECD’s corporate governance criteria are completely adaptable to this bank. Other pronouncements like Basel, AAOFI, IFSB, and FSF can be applied to this bank. NUBankCo can be established in different countries and can be adapted to different monetary, banking, foreign exchange, and commercial laws and regulations and can coexist in competition with conventional banks.NUbankCo will be Islamic in deposit mobilization side and will be Islamic in the loan/credit side for certain Islamic contracts and banking operations. Foreign currency exchange operations, bonds, commercial papers, and precious metals transactions, cash and draft operations, and credit and beneloan (non-interest loan) operations are characterized for NUBankCo to be fully Islamic.

scholarly journals Uprawnienia kredytobiorcy zaciągającego kredyt denominowany lub indeksowany do waluty innej niż polska w świetle ustawy antyspreadowej

Ekonomia ◽  
2018 ◽  
Vol 24 (1) ◽  
pp. 39-56
Author(s):  
Magdalena Paleczna ◽  
Edyta Rutkowska-Tomaszewska
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Consumer Credit ◽  
Competitive Position ◽  
Credit Facility ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
Credit Law ◽  
Credit Contract

Rights of the borrower committing denominated or indexed loan in a foreign currency in light of the Anti-spread ActIn 2004–2008 banks offered consumer denominated loan in a foreign currency, which was a competitive position in relation to a PLN credit facility. Banks had not informed about foreign exchange differences, therefore had caused increase in household indebtedness. Banks also had reserved that consumer has to buy currency only from the bank-lender. In 2011 the Anti-spread Act was adopted, which amended banking law and consumer credit law. Creditors were obligated to inform consumer about rules of determining the manners and dates of fixing the currency exchange rate on the basis of which in particular the amount of credit, its tranches and principal and interest instalments are calculated, and the rules of converting into the currency of credit disbursement or repayment. That information and information about the rules of opening and operating the account shall be concluded in a credit contract. Borrower can repay principal and interest instalments and prepay the full or partial amount of the loan directly in that currency.

scholarly journals Kontrak Tukaran Matawang Asing Melalui Internet: Satu Tinjauan Hukum

2015 ◽  
Author(s):  
Alias Azhar ◽  
Mohd Zaki Zainol ◽  
Mohd. Nizho Abdul Rahman
Keyword(s):  
International Trade ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Islamic Law ◽  
The Internet ◽  
Modus Operandi ◽  
Legal Assessment ◽  
Currency Exchange ◽  
Internet Discussion

Foreign currency exchange contracts or foreign exchange (forex) began to arise when there is an international trade transaction involves two countries using different currencies. The legal assessment of the said issue should apply methods of interpretation and understanding of the terms to be applied in the contract. Terms such as leverage, hedging (hedging) and swap are thoroughly evaluated based on a practical modus operandi allowing for the precise legal assessment. This article discusses the contractual issues and modus operandi of foreign currency transactions and its application from the practical aspects using the Internet. Discussion on the legal assessment is based on the Islamic law of transactions on applied type of contract ('akad), the use of hedging and leverage in foreign exchange contracts via the Internet. Keywords: Contract, Foreign Exchange, Islamic Transaction, Leverage, Muamalat  

scholarly journals Dynamic impact of Gold Prices, Oil Prices and Exchange Rate on Stock Market Performance: A Case of Pakistan’s Stock Exchange (KSE 100 Index)

2021 ◽  
Vol 7 (1) ◽  
pp. 1-12
Author(s):  
Asif Ali ◽  
Muhammad Kamran Khan ◽  
Hamid Ullah
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Foreign Exchange ◽  
Market Performance ◽  
Oil Prices ◽  
Series Data ◽  
Macroeconomic Variables ◽  
Term Relation ◽  
Stock Market Performance ◽  
The Impact

Currently emerging markets are passing through economic turmoil due to considerable increases in the prices of oil and gold with significant variation in the foreign exchange market. All the macroeconomic variables are touching the highest value which was never occurred in the history of Pakistan. Taking advantages of the current situation the study has examined the impact of gold prices, oil prices and exchange rate on stock market performance. For this purpose, the study has used daily data of these macroeconomic variables for the period of 2003 to 2018. By using time series data analysis, it reveals that there is no co-integration or long-term relation among these variables; however, the vector autoregressive model showed significant short-term relation among the securities market performance, foreign exchange rate, prices of oil and gold. The analysis also suggests that significant changes in the prices of oil, foreign exchange rates and the prices of gold have a negative lagged effect on the performance of the stock market.

Prospects for the Middle East in the second quarter

2015 ◽  
Keyword(s):  
Middle East ◽  
Financial Performance ◽  
Foreign Exchange ◽  
North Africa ◽  
Oil Prices ◽  
Islamic State ◽  
Mena Region ◽  
Content Type ◽  
Fiscal Revenue ◽  
State Group

Subject Prospects for the Middle East in the second quarter. Significance With average oil prices in 2015 likely to be 30-40% lower than in 2014, most countries in the Middle East and North Africa (MENA) region will see a huge change in their financial performance. Oil exporters could face major falls in fiscal revenue and foreign exchange earnings, while oil importers will receive a welcome boost to their budgetary and external accounts. On the security front, regional governments will focus on the threat from an expanding Islamic State group (ISG), and the fallout from a possible nuclear deal between the P5+1 world powers and Iran.

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