FX Hedging Behavior among Thai Exporters: A Micro-level Evidence
Nathapong Rujiravanich and
Additional contact information
Thethach Chuaprapaisilp: Bank of Thailand
Nathapong Rujiravanich: Bank of Thailand
Bovornrach Saengsith: Bank of Thailand
PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research
Over the past 20 years, Thailand's FX hedging market has evolved to accommodate demands from rising trade and investment activities. Notwithstanding the growth in the use of FX derivative instruments for investment risk management by outward investment funds and non-residents, FX hedging demand from merchandise trade remains a significant part of the market. This paper utilizes a transactional database that disaggregates exporters according to their firm-level characteristics in order to explain their hedging behavior over periods of exchange rate fluctuation. FX hedging by exporters is found to be sensitive to the movement in exchange rate and past hedging experience. These sensitivities give rise to periods of panic or complacency. The effects also vary across exporters with different sizes.
Keywords: Currency Hedging; Hedging Market; Hedging Behavior (search for similar items in EconPapers)
JEL-codes: F31 D22 G15 (search for similar items in EconPapers)
Date: 2018-02, Revised 2018-02
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Published in PIER Discussion Paper Series
Downloads: (external link)
https://www.pier.or.th/wp-content/uploads/2018/02/pier_dp_081.pdf Published version, 2018 (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:pui:dpaper:81
Access Statistics for this paper
More papers in PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by PIER ().