مخاطر صرف العملات و وسائل التحوط

Abstract EN

This study dealt with Foreign exchange risk or currency risk and the strategies for hedging against it.

It discussed the most common types of risks institutions or businesses are often exposed to due to the fluctuation in currency exchange rates.

These include transaction risks, operational risks and transfer risks, in addition to credit risk that financial institutions are often exposed to.

It also discussed the means of hedging against these risks using the traditional internal and external hedging strategies, as well as some sharia complaint hedging strategies.

One of the conclusions that could be drawn in this study is the fact that exchange rate fluctuations have a decisive impact on the finances of institutions with external relations in their field of activity.

This impact is not limited to institutions with international operations only, but it also extends to local institutions due to foreign competition factors.

Also, the developments that developing countries are going through in the field of foreign trade and investments generate an urgent need to implement exchange rate risk management strategies.

The study also recommends that institutions with multinational activities must adopt appropriate strategies to manage the risks inherent in international investments according to the time span that covers each type of exchange rate risk.

This is in order to ensure the stability of their expected cash flows and avoid undesirable volatility in exchange rates.

Keywords.

Foreign exchange risk, hedging strategies, fixed exchange rate, flexible exchange rate