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Laurenţiu Frăţilă, Robert Şova, Luminiţa Ion and Daniela Borisov
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Laurenţiu Frăţilă: Bucharest University of Economic Studies, Romania
Robert Şova: Bucharest University of Economic Studies, Romania
Luminiţa Ion: Bucharest University of Economic Studies, Romania
Daniela Borisov: Bucharest University of Economic Studies, Romania

Management & Marketing, 2013, vol. 8, issue Special-Issue, 183-190

Abstract: Reducing of the restrictions regarding the circulation of capital as well as relaxation of controls of currency has resulted in a significant increase of transactions of foreign exchange on international financial markets. Thus, in the context of an enhanced volatility of the exchange rates, it is important use of some performing methods of management of currency risk. The purpose of the article is to present an analysis of the situation of the currency risk in a commercial bank, by establishing individual and global currency positions. In this respect, we used specific methods for the calculation of currency risk indicators, on the basis of the synthesis documents and we determined their level, in order to establish the extent of the bank's exposure to this type of risk. Thus, the bank elaborates policies and effective procedures for determining limits of the exposure to currency risk. In conditions of the existence of a controllable level of risk by the unfavourable evolution of exchange rates, the bank may record a normal trend of growth of profits from a period to another and can limit potential losses.

Keywords: currency position; exchange rates; exposure to risk; specific risk indicators; potential loss. (search for similar items in EconPapers)
Date: 2013
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