When making foreign economic activity, many companies are forced to work with currency values in other countries.This is the reason that firms are subject to the effects of fluctuations in the price of a particular currency, changes as a result of the forces of supply and demand.In order to best protect yourself and your company from losses when the currency exchange rates, the director of insurance companies use foreign exchange risks.Insure your foreign exchange risk, the entrepreneur loses some share of the profit from the commission of foreign trade transactions, but gets a good night's sleep and confidence in the future.
There are some methods of insurance of currency risks as foreign currency clause, the use of a basket of currencies, recourse to the services of insurance companies and operations using the conditions "forward".Each of these methods has its advantages and disadvantages.
currency clause - are special items of foreign economic contract, which states that the amount of the contract may be revised according to changes in the exchange rate, which will be the calculation.Insurance currency risks by means of the reservation allows any of the parties to the transaction do not get an unexpected loss from a sharp rise in the exchange rate, but at the same time depriving them of the possibility to receive excess profits, if the change of course will be favorable to them aside.
use of a basket of currencies means that the payment will be made in more than one currency, and the combination of several currencies at a pre-agreed proportions.As a rule, pick a combination of currencies, some elements of which have an inverse correlation between them, that is, the appreciation of one currency coincides with a decrease in the other course.The most popular example - the use of the dollar and the Euro: as a rule, the decline of the dollar is accompanied by an increase of the euro and vice versa.Insurance currency risks through the use of a basket of currencies could give a good effect, if the basket is picked up correctly, but upon completion of the contract the seller will bear the additional costs for the conversion of all currencies that they must necessarily be taken into account while setting prices and profit from the planning commission of foreign trade.
Handling services companies Strass is used quite often, but at the same time is one of the most expensive ways to protect your money.Typically, insurers are taking serious enough premium for the fact that in case of sudden changes in exchange rates to compensate you the amount of the loss when the insured event.But exchange risk insurance in such a way is unreasonably expensive, though, because of its reliability, is not less popular than other ways of insurance.
Transactions using the conditions "forward" - a contracting purchase of a currency in the future (usually within six months later) at a rate fixed on the date of conclusion of the contract.This method is not so much exchange risk insurance, and certain lottery as it is unknown in which direction to be moved the exchange rate, and possibly as saving your money and deprivation of your profits.Thus, forward transactions, although used often enough, are more independent way of making a profit, rather than insurance against exchange rate fluctuations.Also
risk insurance exchange, it is also necessary to reflect on such matters as insurance of credit risk in the event that the buyer is not able to immediately pay the full amount of the contract and ask you for credit.In such a case would have to seek the services of specialized firms forfeiter that buy debetorskoy debt with some discount.
