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Showing posts from May, 2023

Hedging Foreign Exchange Risk During Ukraine-Russia War | Voice Of International Business

The Ukraine-Russia War has shaken the entire world-economy heavily. Business strategies of different countries of the world have changed with the emergence of this war since February 2022. Economic power houses like USA and European Union imposed various sanctions on transactions with Russia. Therefore, this war created volatility in the prices of foreign currencies.   Business organizations as well as the general people have become the victim of this fluctuation in the foreign-exchange market. Smart business organizations around the world are using different derivative products of the foreign exchange market. Hedging is one of the most powerful tools in this derivative group. Here we will discuss about how you can hedge a foreign exchange risk involved for import in US Dollar during the present scenario of Ukraine-Russia war.   What is Hedging Hedging is the activity of minimizing the risk of financial losses by using different financial instruments/ derivatives.   Purpo