Economics at your fingertips  

Exchange Risk Management and the Choice of Invoice Currency: 2014 Questionnaire Survey of Japanese Overseas Subsidiaries (Japanese)

Takatoshi Ito (), Satoshi Koibuchi, Kiyotaka Sato and Junko Shimizu

Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: This study presents new findings of Japanese overseas subsidiaries' foreign exchange risk management and the choice of invoice currency, based on the 2014 RIETI Questionnaire Survey of Japanese Overseas Subsidiaries. First, 60% of Japanese subsidiaries conducted exchange risk management and chose the invoice currency on a discretionary basis. Second, Japanese subsidiaries increased U.S. dollar invoicing transactions, and a marked increase in the use of Asian currencies was not observed. Third, the effect of exchange rate changes on the subsidiaries' pricing behavior differed between the yen appreciation and depreciation periods. Fourth, Japanese subsidiaries reduced the use of the yen in trade with Japan in recent years. Only Japanese subsidiaries in China increased the share of renminbi invoicing trade, and subsidiaries in other Asian economies seldom chose renminbi invoicing in external trade, except for their trade with China.

Pages: 96 pages
Date: 2015-10
New Economics Papers: this item is included in nep-mon, nep-rmg and nep-sea
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

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:

Access Statistics for this paper

More papers in Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().

Page updated 2021-06-09
Handle: RePEc:eti:rdpsjp:15054