CALCULATION OF COSTING RATE AND PROTECTING IT WITH BSE CURRENCY FUTURES ( IMPORTERS POINT OF VIEW) Date : 04 January 2021 Business in international markets is different from handling domestic business transactions at various levels. A company that intends to buy from a foreign supplier must ensure that the transaction is viable, profitable and he…
HOW CAN IMPORTER MANAGE CURRENCY RISK THROUGH BSE CURRENCY FUTURE CONTRACTS Date : Any individual or business that deals with foreign currency is exposed to forex risk. An importer or a foreign currency borrower has payables in foreign currency and he should hedge his business against weakening of rupee. Future contracts may be categorized…
Risk Management Essentials for Exporters and Importers • Company must have a Risk Management Policy. • The policy should be reviewed on Regular Intervals. • Concentrate on the business rather than on making profit out of Currency Exposure. • Companies must decide minimum and maximum hedge ratio. • Unhedged portion should also be monitored…