Currency Risk Management

Currency Risk Management (CRM) is vital for any business engaging in international trade. Fluctuations and uncertainty within currency markets mean that businesses must seek to effectively manage and anticipate potential risks when striking international deals. In a rapidly changing and volatile global business environment, CRM is now more than ever of critical importance. However, what risks should businesses hedge – and how? With so many viable strategies for hedging currency exchange risk, it is crucial that businesses either outsource or have a specialized team to ensure effective and efficient management of currency exchange risks. But how does CRM operate in an emerging market? And what are the key factors that influence the chosen CRM strategies?
Organized in association with Indian Bank, GITAM’s national conference on CRM sought to highlight the trends, problems, and prospects of CRM in India. Taken from the conference proceedings, this book presents 9 innovative research papers that consider differing CRM practices. From a comparative study of India and China to an assessment of CRM strategies used by commercial Indian banks, this book offers an invaluable insight into CRM from the perspective of an emerging market. As a whole, this book addresses India’s shift to a market-determined exchange rate regime and the inevitable problems caused the by the high volatility of exchange rates. Aimed at students enrolled in commerce and management courses, this collection of research papers will also be of interest to researchers in international finance.

List of tables

List of figures

Preface

Acronyms of Currencies Across Globe

Abstracts

Chapter 1 A Comparative Study of Forex Trade of India and China through Forecasting using Brown’s Method

Chapter 2 India’s Exchange Traded Currency Derivatives Market: An Overview

Chapter 3 An Overview of the Foreign Exchange Market in India

Chapter 4 Pareto Currency Risk Management Strategy - A Passive Hedge

Chapter 5 A Study on Price Discovery of Currency Futures at NSE

Chapter 6 Exchange Rate Risk in the Foreign Exchange Market: A Challenge on Corporate Profitability

Chapter 7 Forex Exchange Management and Challenges in Current Global Economic Environment

Chapter 8 Assessment of Operational Risk Management - Global vs Local Banking Sector

Chapter 9 Foreign Exchange Risk Management Practices in Commercial Banks of India

Index

Dr M. S. V. Prasad holds a PhD in Finance from Andhra University and is Head of the Department of Finance at the GITAM Institute of Management. He has published 14 textbooks and several articles for Scopus and ABDC. He has been the recipient of several awards for his article contributions including awards from the CESS, Hyderabad and the NIRD, Hyderabad. He has also received a generous grant from the ISEE, Germany, for an outstanding research paper. He has presented papers in conferences worldwide including in Germany, Switzerland, Netherlands, Malaysia, Iceland, and South Africa.

Dr G. V. Satya Sekhar, MCom, MBA, MPhil, PhD, is Associate Professor in the Centre for Distance Learning at GITAM University, Visakhapatnam. With 20 years of teaching and research experience, he has developed study materials for the Executive MBA Programme at Andhra University and for the Centre for Distance Learning at GITAM University. He has also published widely in national and international reputed journals and has authored several books including ‘Management Information Systems’, ‘Managerial Economics’, ‘Business Policy and Strategic Management’, ‘Performance Appraisal of Indian Mutual Funds’, ‘Strategical Financial Management’, ‘The Indian Mutual Fund Industry’ and ‘The Management of Mutual Funds’. Dr Satya Sekhar has participated in and presented papers at various national and international seminars.