Foreign Exchange and Money Markets Transactions

Felix I. Lessambo
Additional contact information
Felix I. Lessambo: Fordham University

Chapter Chapter 5 in International Finance, 2021, pp 61-78 from Springer

Abstract: Abstract Foreign currency transactions are transactions denominated in a currency other than the entity’s functional currency. Foreign exchange risk represents exposure to changes in the values of current holdings and future cash flows denominated in other currencies. The most used techniques in measuring FX risk are: (i) hedging, (ii) FX gap analysis, (iii) FX rate duration analysis, (iv) FX rate simulation analysis, and (v) FX rate volatility analysis. Money market instruments are securities that provide businesses, banks, and the government with large amounts of low-cost capital for a short time. The period is overnight, a few days, weeks, or even months, but always less than a year. The International Monetary Market (IMM) was formed in December 1971 and was established in May 1972.

Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-69232-2_5

Ordering information: This item can be ordered from
http://www.springer.com/9783030692322

DOI: 10.1007/978-3-030-69232-2_5

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().