2. External hedging techniques
Thanks to the freedom of foreign exchange, banks have developed a number of techniques to cover international trade operators against foreign exchange risk:
forward exchange contracts ;
foreign currency loans ;
currency swaps ;
currency options.
2.1 Forward exchange contracts
Interest
To hedge all fixed-term payment or receipt transactions against currency fluctuations.
A forward exchange contract is a purchase or sale of foreign currencies at a guaranteed rate on a specific date (figure
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External hedging techniques
Bibliography
Websites
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Network of French Chambers of Commerce and Industry (CCI de France)
They are natural and historic partners for companies.
The CCIs' 400 International Development Advisors, grouped within the CCI International regional structures run by the Regional CCIs and federating the 126 Territorial CCIs, support companies in their international development by providing...
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