Managing Foreign Currency Risks

Wilbert O. Bascom
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Wilbert O. Bascom: First Equity Corporation

Chapter 4 in Bank Management and Supervision in Developing Financial Markets, 1997, pp 55-76 from Palgrave Macmillan

Abstract: Abstract Banks in developing financial markets would no doubt have assets, liabilities, capital, and off-balance sheet positions in foreign currencies. Such positions would result from their activities in providing banking services to the government and government agencies in the public sector, and to their domestic and foreign customers in the private sector. Some banks may even have foreign exchange positions associated with their speculative activities in foreign currencies or with their attempt to make markets in particular currencies. While these positions can enhance the bank’s cash flows from foreign currency trading, they can also expose the bank to unaccustomed risks that must be minimized through effective management, and control systems.

Keywords: Exchange Rate; Money Supply; Foreign Currency; Spot Rate; Domestic Currency (search for similar items in EconPapers)
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-37239-9_4

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DOI: 10.1057/9780230372399_4

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