Forex

( clik some ads and earn lot off money)

swapna

Ads

u can make daily 600$........... now join

adhitz ads

Exposure Analysis

Posted by forex On Friday, November 12, 2010 0 comments

An Exposure can be defined as a Contracted, Projected or Contingent Cash Flow whose magnitude is not certain at the moment. The magnitude depends on the value of variables such as Foreign Exchange rates and Interest rates.

Treasury Risk Management The Colour of Money - Ongoing issues in Risk Management
The company will determine and analyse its Foreign Exchange exposures.
Determination:
The following cash flows/ transactions will be considered for the purpose of exposure management.

Variable / Cash Flows Transaction Type
  • Contracted Foreign Currency Cash Flows
  • Foreign Interest Rates, whether Floating or Fixed
  • Cash Flows from Hedge Transactions
  • Projected/ Contingent Cash Flows
  • Both Capital and Revenue in nature
  • All Interest Payments/ Receipts
  • All Open hedge transactions
  • Both Capital and Revenue in nature
  • Cash Flows above $100,000/- in value will be brought to the notice of the Exposure Manager, as soon as they are projected.
  • It is the responsibility of the Exposure Manager to ensure that he receives the requisite information on exposures from various sections of the company in time.
Analysis
These exposures will be analysed and the following aspects will be studied:
  • Foreign Currency Cash Flows/ Schedules
  • Variability of Cashflows - how certain are the amounts and/ or value dates?
  • Inflow-Outflow Mismatches / Gaps
  • Time Mismatches / Gaps
  • Currency Portfolio Mix
  • Floating / Fixed Interest Rate ratio

No comments:

Post a Comment

Adds

lotoff money earning......... now join this

join neaobux

ANY ONE JOIN THIS SITE AND EARN LOTOF MONEY

Earn Money Like Magic!

googleads

BidVertiser