Question
A multinational corporation with subsidiaries in
multiple countries is exposed to significant currency risk due to fluctuations in exchange rates. The company's CFO is exploring financial derivatives to mitigate this risk and ensure predictable cash flows. The CFO is particularly interested in a derivative that involves the exchange of principal and interest payments in different currencies, effectively locking in exchange rates and mitigating the impact of currency fluctuations on the company's cash flows. Which specific type of derivative would best suit the CFO's needs?Solution
Currency swaps involve the exchange of principal and interest payments in different currencies, allowing companies to effectively lock in exchange rates and mitigate the impact of currency fluctuations on their cash flows.
With reference to āLeptospirosisā, consider the following statements:
1.Leptospirosis is a contagious disease in animals but is occasionally ...
Which organization recently received in-principle RBI approval for a Cross-Border Payment Aggregator license?
What was India's ranking in the World Investment Ranking in 2023, according to the UNCTAD report?
Small stone tools were first discovered in the Vindhya region of India by whom?
Who started the excise system in Uttarakhand?
The Department of Commerce recently extended the Interest Equalisation Scheme for pre- and post-shipment rupee export credit for MSME exporters until Au...
Which prominent IT company-led consortium has been awarded an advance purchase order worth more than ā¹15,000 crore by the government-owned BSNL?
World Health Organization (WHO) recently recommended a new vaccine, R21/Matrix-M, for the prevention of which diesease in children?
When is National Sports Day celebrated every year in India?
In which city will Bharat Drone Shakti-2023 be organized?
