scholarly journals The influence of factors on the security management of the foreign exchange market in Ukraine

2021 ◽  
Vol 2021 (2) ◽  
pp. 315-327
Author(s):  
Oksana Svatiuk ◽  
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Exchange Rate Regime ◽  
Security Management ◽  
Economic Security ◽  
The State ◽  
Exchange Market ◽  
State Management ◽  
Floating Exchange Rate

The article analyzes the principles of development and security management of the foreign exchange market of Ukraine. Substantiates the influence of factors on the functioning of the foreign exchange market such as: improvement of the regulatory framework; monetary policy on the stabilization of the floating exchange rate regime; lending to the National Bank of Ukraine within the current 18-month stand-by program from the International Monetary Fund; replenishment of the market currency through the purchase and sale of government bonds; the influence of international and domestic factors on the liberalization of the foreign exchange market in Ukraine; receipt of a share of currency more than 10% of the population working abroad; restoring the confidence of individuals and entrepreneurs in the national currency. The structure and analysis of the process and dynamics of the foreign exchange market of Ukraine are characterized. The author evaluates the security management of currency regulation of the floating exchange rate regime, which directly affects the state of the foreign exchange market (Fig. 1). The state of exchange rate regulation and its impact on the foreign exchange market on the basis of personal observation during 2015-2021 are studied. The main advantage of this article is the clarification of the elements of the mechanism of currency regulation, which is due to the negative impact of a wide range of external and internal factors on the tools (Fig. 2). This mechanism is a powerful lever of state management of economic security and regulation of foreign exchange market liberalization in the context of a significant deterioration of the crisis situation in Ukraine in recent years. The main areas of security management of the mechanism of functioning of the foreign exchange market of Ukraine are the following. The first is optimization of the procedure of foreign exchange interventions of the NBU – schedule, parameters of interventions. This will increase the transparency and predictability of NBU operations in the foreign exchange market. NBU managers should abandon discriminatory approach to ensure all banks have equal access to interventions. The second is increasing of the digitization and disclosure of communication policies with actors. Its deterioration is due to negative comments addressed to banks regarding speculative actions on exchange rate formation, non-compliance with the requirements of the NBU in lending, security management and customer distrust. The third is strengthening of the reserve requirements for bank security management in order to reduce the excessive liquidity of the banking system.

Evolving Efficiency of Exchange Rate Movement: An Evidence from Indian Foreign Exchange Market

2019 ◽  
Vol 21 (4) ◽  
pp. 956-969 ◽  
Author(s):  
Sashikanta Khuntia ◽  
J. K. Pattanayak
Keyword(s):  
Exchange Rate ◽  
Market Efficiency ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Exchange Rate Regime ◽  
Time Varying ◽  
Exchange Market ◽  
Arbitrage Opportunities ◽  
Window Approach ◽  
Central Bank Interventions

This study empirically verifies the evolving and time-varying efficiency of Indian foreign exchange market using the framework of adaptive market hypothesis (AMH). Whether market efficiency is time varying or static, and if time varying, identification of possible events causing such time-varying efficiency are the two major agenda of this study. We employ a set of recent methods which are robust and possess stronger power properties. Moreover, we follow a fixed-length rolling window approach to explore time-varying nature of market efficiency and to avoid data-snooping bias. Our overall findings suggest that market efficiency is not an all-or-nothing condition; it varies over time. We also find that episodes of efficiency coincide with emergence of major events and market microstructure issues. Particularly, changes in exchange rate regime, financial turbulence, major central bank interventions and trade volume are the prominent causes for time-varying efficiency in INR–USD exchange rate. The evidence of swing between efficiency and inefficiency can prompt currency traders to exploit arbitrage opportunities that emerge with different market conditions.

Bank of Russia’s Shifts in Policy Guidelines: Transition to the Floating Exchange Rate Regime

2015 ◽  
Vol 2015 (4) ◽  
pp. 99-121
Author(s):  
Sergey Dubinin ◽  
Nina Miklashevskaya ◽  
Sofya Karlovskaya ◽  
Petr Patron
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange Market ◽  
Exchange Rate Regime ◽  
Flexible Exchange Rate ◽  
External Shocks ◽  
Stabilization Policy ◽  
Exchange Market ◽  
Russian Economy ◽  
Floating Exchange Rate ◽  
General Regulation

The paper analyzes the Bank of Russia’s policy during its transition to the floating exchange rate regime. We show that this transition logically follows the general regulation strategy towards price stability. After thorough study of reasons and consequences of the transition, we conclude that internal and external shocks to Russian economy in 2014 accelerated the shift to the flexible exchange rate. We emphasize the assessment of stabilization policy at the foreign exchange market.

scholarly journals BITCOIN-USD TRADING USING SVM TO DETECT THE CURRENT DAY’S TREND IN THE MARKET

2019 ◽  
Vol 1 (1) ◽  
pp. 70-77
Author(s):  
Ferdiansyah Ferdiansyah ◽  
Edi Surya Negara ◽  
Yeni Widyanti
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Investment Decisions ◽  
Market Value ◽  
Develop Model ◽  
Support Vector ◽  
Prediction Tool ◽  
Exchange Market ◽  
Support Vector Classifier

Cryptocurrency trade is now a popular type of investment. Cryptocurrency market has been treated similar to foreign exchange and stock market. The Characteristics of Bitcoin have made Bitcoin keep rising In the last few years. Bitcoin exchange rate to American Dollar (USD) is $3990 USD on November 2018, with daily pice fluctuations could reach 4.55%2. It is important to able to predict value to ensure profitable investment. However, because of its volatility, there’s a need for a prediction tool for investors to help them consider investment decisions for cryptocurrency trade. Nowadays, computing based tools are commonly used in stock and foreign exchange market predictions. There has been much research about SVM prediction on stocks and foreign exchange as case studies but none on cryptocurrency. Therefore, this research studied method to predict the market value of one of the most used cryptocurrency, Bitcoin. The preditct methods will be used on this research is regime prediction to develop model to predict the close value of Bitcoin and use Support vector classifier algorithm to predict the current day’s trend at the opening of the market

scholarly journals HEDGING CURRENCY RISKS IN INTERNATIONAL BUSINESS USING THE OPPORTUNITIES OF THE INTERNATIONAL FOREIGN EXCHANGE MARKET

2021 ◽  
Author(s):  
Olena Liegostaieva
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
International Business ◽  
Foreign Exchange Market ◽  
Foreign Currency ◽  
Exchange Market ◽  
Currency Risk ◽  
Exchange Rate Fluctuations ◽  
Current Value ◽  
Financial Result

The article is devoted to the study of currency risk hedging in international business. The article notes that the international foreign exchange market is the largest and fastest growing of all world markets. The characteristic features of the international currency market are substantiated and offered. It is also noted that foreign exchange transactions provide economic ties between participants located on different sides of state borders: settlements between firms from different countries for the supply of goods and services, foreign investment, international tourism and business travel. It is determined that hedging of currency risks is the protection of funds from the unfavorable movement of exchange rates, and is carried out in fixing the current value of funds by concluding an agreement on the foreign exchange market. When hedging, the risk of exchange rate changes disappears, and this makes it possible to forecast the company's activities and see the financial result, which is not distorted by exchange rate fluctuations, which will allow you to determine product prices, calculate profits, etc. The main difference between hedging and other types of transactions is that its purpose is not to generate additional profits, but to reduce the risk of potential losses, as risk reduction is almost always necessary to pay, hedging, of course, involves additional costs. Hedging is a way to improve business planning. An enterprise wishing to use this service shall pledge the specified amount, from which losses on its positions will be deducted. In today's conditions, thanks to the foreign exchange market, there is a very reliable way to hedge currency risk. This method is to fix the current value of funds by concluding agreements in this market. With hedging, the company eliminates the risk of exchange rate fluctuations, and this allows you to forecast activities and see the financial result, which is not changed by exchange rate fluctuations. Allows you to pre-determine product prices, determine profits, etc. Thus, the principle of hedging in international business is to open a currency position in a foreign currency account for future transactions to convert funds.

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