Die bestuur van wisselkoersrisiko

M.Com. (Investment Management)In the research of currency risk management it is important to note that currency risk management forms part of the overall risk management of business and authorised currency dealers. various hedging instruments exist with which currency risk can be managed. This study deals with the origin and the influence of currency fluctuations on business, and the management of such risk. Various factors exist which affect the level of exchange rates. In South Africa the most important factors affecting these rates are the gold price, the level of the American dollar and the degree of political stability. Since most of these factors do not fall within South Africa's control, but are mostly influenced by external factors, exchange rates can only be managed to a certain extent. This is possible through Reserve bank interference. Fluctuation in exchange rates exposes local companies and currency dealers to currency risk. Several techniques and instruments can be employed in currency risk management