Foreign exchange rate risk, or currency risk, could potentially happen when the value of one currency fluctuates relative to ...

Currency investing is a well-established corner of institutional investing that has the potential to provide stable returns while simultaneously diversifying traditional equities and fixed income.

Learn how to mitigate currency risk with ETFs, forward contracts, and options contracts to protect international investments from exchange rate fluctuations.

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation This paper presents some sound practices for foreign-currency risk management in developing countries and outlines ...

For treasurers operating in the foreign exchange market, the inherent challenges of FX trading are well-known. The FX market is the largest and most liquid in the world; trading currencies means ...

Currency arbitrage refers to the practice of taking advantage of exchange rate differences in various foreign exchange market venues to make a net profit. Currency arbitrage plays a significant role ...

The U.S. dollar has seen some remarkable swings against major currencies recently. For example, over most of 2005, it gained nearly 18% against the yen and 13% against the euro, while between March ...