Journal of International Conference Proceedings
Vol 1, No 1 (2018): Proceedings of the 1st International Conference of Project Management (ICPM) Mal

Minimizing The Risk of Foreign Exchange Transactions in Facing Foreign Exchange Exposure

Achda Vellanita (Narotama University)
Zulfikar Steifani Prayoga (Narotama University)
Agus Sukoco (Narotama University)
Gede Arimbawa (Narotama University)
M. Ikhsan Setiawan (Narotama University)



Article Info

Publish Date
02 Jun 2018

Abstract

The purpose This study discusses how to minimize foreign exchange transaction risk by using hedging technique method. Where this research performs actions taken to protect a company against exchange rate exposure and to measure the extent to which a company can be influenced by the exchange rate. Method, This research is quantitative descriptive by analyzing forward contract method in facing foreign exchange exposure. Calculates the forward rate used to hedge the net assets and liabilities of the company in foreign currency. Result,By using the contractual forward contract hedging method, the forward contract hedging method is more profitable than using open position method to face foreign exchange exposure. From the data obtained forward contract hedging method provides exchange rate advantage of Rp 36.877.227.752.936 while the open position method provides for foreign exchange loss of Rp 36.877.227.752.936 The findingsFrom this study companies that conduct international transactions or exposure and imports are influenced by fluctuations in foreign exchange rates. The MNC company will be able to reduce the risk of currency fluctuation losses, so as not to have a worse impact on the company Keywords: foreign exchange, hedging, risk ,currency

Copyrights © 2018






Journal Info

Abbrev

JICP

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Electrical & Electronics Engineering Industrial & Manufacturing Engineering Languange, Linguistic, Communication & Media

Description

JICP is proceedings series that aims to publish proceedings from conferences, in the fields of economics, business, and management research. All proceedings in this website are open access, which means the published articles are permanently free to read, download, copy, and distribute. The online ...