Hedging foreign exchange risk with swaps and options in banks

Abstract EN

The primary purpose of this article is to examine the importance of financial derivative instruments (options, swaps), and how they can be used to manage risk, exactly to hedging against currency risk in the commercial banks, we used the qualitative and quantitative methods to illustrate the role of options and The results confirm that hedging strategies, either with swaps or options yield better performance compared to unhedged strategy, the bank can guarantee a limits to their costs whatever the FX rates in market it twill pay defined amounts.