Tag Archives: Finance

Key Operational Controls for Treasury

Assuming that the corporation has accepted in principle that it needs to manage its currency risk, it then has several choices to make with regard to how it will go about achieving this — the instruments it will allow itself … Continue reading

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Internal Hedging

There are of course well-known methods of hedging internally, such as: Netting (debt, receivables and payables are netted out between group companies) Matching (intragroup foreign currency inflows and outflows) Leading and lagging (adjustment of credit terms before and after due … Continue reading

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Types of Currency Risk

For corporations, there are three key kinds of currency risk they have to manage. They are: 1. Transactional risk (receivables, dividends, etc.) 2. Translational risk (balance sheet) 3. Economic risk (present value of future operating cash flows) Transactional risk or … Continue reading

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