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Post by account_disabled on Dec 4, 2023 5:40:17 GMT
Associated with exchange rates are transferred to the counterparty. Another way to manage exchange rate risk is to implement indexation clauses known as commodity price change clauses. They allow price changes to be proportional to exchange rate changes. Risk may be spread between two parties or one party to the transaction. These clauses are introduced into the contract. Between contractors. The difficulty in applying this clause lies in the different expectations for exchange rate changes. Another method is to pay early and pay late. It involves accelerating debt repayments Job Function Email List and deferring repayments of receivables when a company anticipates a depreciation of the domestic currency. This allows you to reduce costs in terms of liabilities or increase revenue. In terms of assets. This approach is most commonly used by capital groups because entities unrelated to the commercial entity are unwilling to agree to defer payment dates. Furthermore the contractor may not approve such a solution so the risk will be transferred to him. External Risk Management Approach On the other hand there is the external risk management approach.
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