Foreign-Exchange Risk
As we saw in the previous part, the value of real fluctuated dramatically as the political and
economic environments became instable in Brazil and nearby countries. The fluctuation of real
caused extreme fluctuation in exchange rate and this condition gave severe risk to Dell Mercosur.
This kind of risk is called Foreign-exchange ri
risk, liquidity risk and market risk. Market risk arises from currency risk, interest rate risk and fair value risk associated with investments etc. The company has a risk management program in place to monitor and actively manage such risks. In this report, our group will be focusing on the currency risk/ foreignexchange risk of the market risk.
The company operates primarily in Korean Won (KR
Exchange Market
a market for converting the currency of one country into that of another country
Exchange Rate
the rate at which one
currency is converted
into another
The Functions of the ForeignExchange Market
Currency Conversion
To convert the currency of one country
into that of another country
Insuring against ForeignExchange Risk
To prov
외환시장의 구성
외환시장(foreignexchange market) 은 크게 두 가지 주요 기능이 있다. 첫 번째는 국제경영활동을 위하여 한 나라의 화폐를 다른 나라의 화폐로 교환하는 기능이고, 두 번째는 변동환율제에서 환율변동의 불확실성에 따른 환 위험(foreignexchange risk)에 대처하는 기능이다.
① 교환기능: 국제
Foreignexchange reserves will thus remain very high.
Banking risk, however, has been increasing. After successive reductions of interest rates and the lifting of quotas on loans, the expansion of credit accelerated significantly in 2009. In a context of relatively lax risk management, asset quality will be likely to deteriorate with the amount of non-performing loans increasing. With the govern