t currency risk is closely related to the active pricing policy views and the cost of insurance of, the degree of reliability of the insurance companies of both the bank and its counterparties and customers., almost all the major banks are trying to create a portfolio of their communication currency transactions, balancing assets and liabilities by currency and maturity. in basically all external methods management of currency risks are focused on their diversification. For this purpose, the most widely used such SROs h ITATION currency transactions as forward, futures with ITATION, optional (and in the inter bank market, and on the exchanges). Currency sold on an «spot» (With immediate n nym or two-day calculation), «swap» (Spot / forward, spot between different banks) or «forward» («Outright» between the bank and the customer);. Methods to reduce the currency riskminimize currency risk the bank may use the following as e we:
. The loan in one currency with the condition of repayment in another subject forward rate recorded in the loan agreement. Such measures on Call, lyayut insured bank vatsya from possible devaluation of the currency and that cred.that the bank gives a loan of 100,000 francs. At the same time, calculated in th weaken the franc against the pound sterling, the bank agreed with the customer can lock in the loan agreement in ka as a condition of the loan repayment in pounds at the forward rate of 10 francs for 1 pound ( ie the borrower to repay the loan will require 10,000 lbs.) In this case, the impact of variations are possible three district development that I events :) if at the time n of extinguishing the debt on the loan rate and availab vit 10 francs for 1 pound, the bank n about their will obtain the 10,000 pounds, and none of the art of the Parties no losses ;) if at the time of loan repayment rate will be equal to 12 francs for 1 pound, the bank will receive 10,000 pounds again, while in the case of s gates loan in francs he would with 100,000 francs, which amounted to only 8333.33 pounds (100,000 / 12) ;) if at the time the loan rate with 9 puts francs for 1 pound, the bank would be at a loss on how many people were back again 10,000 pounds, while the repayment of the loan in francshe would have 100,000 francs or pounds 11111.11.
. Forward foreign exchange contracts. This is the main method of lowering the exchange rate risk. Such operations require for Turning term agreements between the bank and the customer on the purchase and sale of foreign currency at a fixed in a transaction amount and agreements forward exchange rate. The mechanism of action of forward currency contracts is similar in principle to that just described. Forward foreign exchange transactions happened wt fixed or option. The term «fixed» means that the transaction must be with vertices in strictly defined n tion day. Option before the same choice client believes the date of its p Board decision: either any day from the date of signing the contract and to the definition of n tion deadline or within kako of any particular period in the bud uu eat. An important condition forwarders d tion contract is bound by its use complements.himself forward exchange contract associated with definite l ennym ri with whom. For the bank it is that the client may not be able to sno lnit its obligations under the contract, in this case, the bank would not FPIC nym sell the currency used by the client in accordance wi...
