DERIVATIVE INSTRUMENTS – ALTERNATIVES TO COVER THE FOREIGN EXCHANGE RATE IN THE CASE OF IMPORT-EXPORT OPERATIONS - ACCOUNTING APPROACH FOR ROMANIA
Cristina Silvia Nistor (),
Crina Ioana Filip () and
Adela Deaconu ()
Additional contact information
Cristina Silvia Nistor: Department of Accounting, Faculty of Economics and Business Administration, Babes-Bolyai University, Cluj-Napoca, Romania
Crina Ioana Filip: Department of Accounting, Faculty of Economics and Business Administration, Babes-Bolyai University, Cluj-Napoca, Romania
JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, 2008
The present dynamics of the economic environment imply the existence of permanent exchange between the world states’ economies. This fact is benefic for and desired by all the participants on the international economic transactions market, but it may also imply some risks. Thus, they must have the capacity, in the current conditions of financial evolutions and involutions, to protect themselves against the risk generated by foreign currency fluctuations in the case of international business. In this paper, our attention is focused on the possibilities of diminishing the foreign currency risk of the import-export operations, through usage of derivative instruments. We singularized the research for two components of the derivative instruments: futures and options. We added an accounting approach to the theoretical approach singularized for Romania. In order to be relevant, our study was build in parallel, by highlighting the effects of the foreign currency fluctuations in both the cases of using and not using derivative instruments. The research findings will demonstrate and sustain the fact that usage of derivative instruments is an admissible way to cover the risk generated by foreign currency fluctuations in the case of import-export operations.
Keywords: derivative instruments; foreign currency risk; import-export; accounting approach; Romania (search for similar items in EconPapers)
JEL-codes: G29 M49 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://tbs.ubbcluj.ro/RePEc/bbn/journl/Negotia_2_2008.pdf Revised version, 2008 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bbn:journl:2008_2_8_nistor
Access Statistics for this article
JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA is currently edited by Cornelia Pop
More articles in JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA from Babes-Bolyai University, Faculty of Business Contact information at EDIRC.
Bibliographic data for series maintained by Cornelia Pop ().