scholarly journals The Peculiarities of Foreign Exchange and Insurance Markets

Economics ◽  
2021 ◽  
Vol 104 (3-5) ◽  
pp. 28-40
Author(s):  
Khatuna Shalamberidze Khatuna Shalamberidze ◽  
Nana Benidze Nana Benidze
Keyword(s):  
Foreign Exchange ◽  
Financial Market ◽  
Financial Risk ◽  
Insurance Markets ◽  
Exchange Rate Risk ◽  
Financial Risks ◽  
Foreign Exchange Risk ◽  
Exchange Risk ◽  
The Right ◽  
Risk Insurance

Foreign exchange risk is one of the most important components of the financial market. Like any other financial risk, it can be managed or avoided. Financial risk management requires the relevant knowledge and resources and only specialized financial institutions are engaged in doing so. Thee commercial banks do not accept foreign exchange risks, their assets and liabilities are denominated in the same currency. Therefore, it is recommended for households and businesses to avoid the currency risk. People's behavior is different during the sharp fluctuations of exchange rates. There is no ideal tactic for behavior. However, we would like to share some basic tips to help you reduce your expected financial risks; At the same time, the undesirable attitude characteristic of the period of strong fluctuations in the course will become clearer and more preventive. We hope that the information presented in such circumstances will help you to make the right decision. Keywords: Foreign exchange and insurance market efficiency; Exchange rate risk insurance; Involvement of financial instruments.

scholarly journals The Peculiarities of Foreign Exchange and Insurance Markets

Economics ◽  
2021 ◽  
Vol 104 (3-5) ◽  
pp. 28-40
Author(s):  
Khatuna Shalamberidze Khatuna Shalamberidze ◽  
Nana Benidze Nana Benidze
Keyword(s):  
Foreign Exchange ◽  
Financial Market ◽  
Financial Risk ◽  
Insurance Markets ◽  
Exchange Rate Risk ◽  
Financial Risks ◽  
Foreign Exchange Risk ◽  
Exchange Risk ◽  
The Right ◽  
Risk Insurance

Foreign exchange risk is one of the most important components of the financial market. Like any other financial risk, it can be managed or avoided. Financial risk management requires the relevant knowledge and resources and only specialized financial institutions are engaged in doing so. Thee commercial banks do not accept foreign exchange risks, their assets and liabilities are denominated in the same currency. Therefore, it is recommended for households and businesses to avoid the currency risk. People's behavior is different during the sharp fluctuations of exchange rates. There is no ideal tactic for behavior. However, we would like to share some basic tips to help you reduce your expected financial risks; At the same time, the undesirable attitude characteristic of the period of strong fluctuations in the course will become clearer and more preventive. We hope that the information presented in such circumstances will help you to make the right decision. Keywords: Foreign exchange and insurance market efficiency; Exchange rate risk insurance; Involvement of financial instruments.

scholarly journals The Peculiarities of Foreign Exchange and Insurance Markets

Economics ◽  
2021 ◽  
Vol 104 (3-5) ◽  
pp. 28-40
Author(s):  
Khatuna Shalamberidze Khatuna Shalamberidze ◽  
Nana Benidze Nana Benidze
Keyword(s):  
Foreign Exchange ◽  
Financial Market ◽  
Financial Risk ◽  
Insurance Markets ◽  
Exchange Rate Risk ◽  
Financial Risks ◽  
Foreign Exchange Risk ◽  
Exchange Risk ◽  
The Right ◽  
Risk Insurance

Foreign exchange risk is one of the most important components of the financial market. Like any other financial risk, it can be managed or avoided. Financial risk management requires the relevant knowledge and resources and only specialized financial institutions are engaged in doing so. Thee commercial banks do not accept foreign exchange risks, their assets and liabilities are denominated in the same currency. Therefore, it is recommended for households and businesses to avoid the currency risk. People's behavior is different during the sharp fluctuations of exchange rates. There is no ideal tactic for behavior. However, we would like to share some basic tips to help you reduce your expected financial risks; At the same time, the undesirable attitude characteristic of the period of strong fluctuations in the course will become clearer and more preventive. We hope that the information presented in such circumstances will help you to make the right decision. Keywords: Foreign exchange and insurance market efficiency; Exchange rate risk insurance; Involvement of financial instruments.

Cryptocurrencies vs global foreign exchange risk

2019 ◽  
Vol 20 (4) ◽  
pp. 330-351
Author(s):  
Calvin W. H. Cheong
Keyword(s):  
Foreign Exchange ◽  
Financial Risk ◽  
Cost Effective ◽  
Detailed Examination ◽  
Barriers To Entry ◽  
Alternative Mode ◽  
Foreign Exchange Risk ◽  
Content Type ◽  
Exchange Risk ◽  
Cost Efficient

Purpose This study aims to examine the properties of four major cryptocurrencies and how they can be used as a simpler alternative mode of hedging foreign exchange (FX) risks as compared to existing mainstream financial risk management techniques. Design/methodology/approach This study uses a combination of visual data representations and the classic Fama and Macbeth (1973) two-pass procedure regressions. Findings The findings show that cryptocurrencies can be a more effective hedge against FX risks as compared to other common hedging instruments and/or techniques such as gold or a diversified currency portfolio. Research limitations/implications The conclusions were arrived at based only on a small group of cryptocurrency, i.e. Bitcoin, Ethereum, Litecoin and Ripple. Other cryptocurrencies such as Dogecoin or ZCash might exhibit different properties. Practical implications Cryptocurrencies can be cost-effective and cost-efficient instruments that provide a solid hedge for investors and/or firms that are exposed to global FX volatility. Its ease of trade and virtually zero barriers to entry makes it an easily accessible alternative hedge instrument as compared to more complex items such as derivatives. Originality/value If cryptocurrencies are to be accepted into mainstream usage, a detailed examination of its various uses is necessary. In particular, as they are often touted to be the future of currency, its properties and price behavior relative to other mainstream financial instruments need to be well-understood, not only by finance professionals but also by laypersons.

FINANCIAL RISKS OF MICROFINANCIAL ORGANIZATIONS (FOREIGN EXPERIENCE)

2021 ◽  
Vol 2 (11) ◽  
pp. 48-62
Author(s):  
Viktor V. Erokhin ◽  
Keyword(s):  
Interest Rate ◽  
Foreign Exchange ◽  
Legal Status ◽  
Interest Rate Risk ◽  
Risk Exposure ◽  
Financial Risks ◽  
Microfinance Institutions ◽  
Foreign Exchange Risk ◽  
High Interest Rate ◽  
Exchange Risk

New ideas make it clear that attempts by the international community to support microfinance institutions and provide them with borrowers do not always take into account the most serious financial risks of lenders. This study examines the exposure of microfinance institutions to liquidity, interest rate and foreign exchange (FX) risks. Analyzing data from financial statements of microfinance institutions, it can be concluded that the microfinance sector faces minimal liquidity risk, high interest rate risk and lower than commonly as-sumed foreign exchange risk. Linking risk exposure to institutional characteristics, the data show that legal status and regional affiliation correlate with risk exposure, but regulatory quality does not. The results indicate that the lender community may not expect great benefits from expanding the array of ongoing measures from credit market regulators to mitigate liquidity or foreign exchange risk.

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