Cover image for The international guide to foreign currency management
Title:
The international guide to foreign currency management
Author:
Shoup, Gary.
Personal Author:
Publication Information:
Chicago : Glenlake Pub. ; New York : AMACOM, [1998]

©1998
Physical Description:
xvi, 528 pages : illustrations ; 24 cm
Language:
English
ISBN:
9780814404409
Format :
Book

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Library
Call Number
Material Type
Home Location
Status
Central Library HG3851 .S49 1998 Adult Non-Fiction Non-Fiction Area
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Summary

Summary

Financial managers rarely find a one-stop resource for a complete course on currency management. Building on his previous work, Currency Risk Management, Gary Shoup builds a complete foreign currency management program, showing managers and their risk consultants how it is done in the real world.This extensive text covers everything managers and consultants need to implement a total currency management program, from trends in exchange rates to understanding pricing determinants. Shoup discusses in detail the market for currencies price forecasting, exposure, and much more. Readable, sensible, and useful, The International Guide to Currency Management will be a valuable resource for years to come.


Table of Contents

Acknowledgementsp. ix
About the Authorp. xi
Prefacep. xiii
Introductionp. 1
Chapter 1 The Problem with Foreign Currencyp. 7
Foreign Currency Managementp. 11
Hedging a Dutch Guilder Exposurep. 13
Is Hedging the Answer?p. 15
Conclusionp. 16
Chapter 2 What is a Currency, Really?p. 17
What is a Currency?p. 17
The Evolving U.S. Dollarp. 19
Goldp. 22
Eurocurrencyp. 24
Currency as a Commodityp. 24
Price, Rates, and Valuep. 25
Hyperinflationp. 26
Currency Pegsp. 27
Exchange Ratesp. 28
Chapter 3 Currency Arrangementsp. 35
Convertibilityp. 35
Exchange Rate Regimesp. 38
Currency Composites and Basketsp. 43
Trends in Exchange Rate Systemsp. 49
The Great Debatep. 51
Conclusionp. 53
Chapter 4 Price Determinantsp. 55
Purchasing Powerp. 55
Supply and Demandp. 61
Currency Flowsp. 63
Government Actionsp. 67
For Want of a Francp. 73
Conclusionp. 75
Chapter 5 Exchange Rates and Interest Ratesp. 77
Interest Rate Parityp. 78
The Anatomy of Interest Rate Parityp. 83
Chasing Higher Yieldsp. 86
Premiums, Discounts, and Costs of Carryp. 89
Euroratesp. 91
Forward Value Datesp. 93
Finding Forward Ratesp. 94
Value Changesp. 96
Chapter 6 The Marketp. 101
The Interbankp. 101
The Futures Exchangep. 110
The Options Marketp. 117
The Currency Swap Marketp. 120
Reading The Wall Street Journalp. 120
Chapter 7 Price Forecastingp. 131
Fundamental Analysisp. 131
Technical Analysisp. 139
Conclusionp. 152
Chapter 8 Exposure and Riskp. 155
Defining Exposurep. 156
Analyzing Exposurep. 156
Accounting Exposurep. 158
Cash Flow Exposurep. 170
Operating Exposurep. 172
Strategic Exposurep. 180
Value-Based Exposurep. 181
Chapter 9 Principals of Hedgingp. 183
The Long and the Short of itp. 183
Definition of Hedgingp. 187
Locking in Current Valuesp. 188
Transferring Riskp. 190
Parallel Marketsp. 195
Basisp. 196
The Hedge Triadp. 201
Currency Derivativesp. 203
Leveragep. 214
Chapter 10 Developing the Management Programp. 219
Developing A Programp. 219
Working within the Corporate Culturep. 228
Benchmarkingp. 232
The Information Systemp. 234
The Currency Management Teamp. 239
Writing Policyp. 245
Other Considerationsp. 246
Summaryp. 248
Chapter 11 Managing Strategic Exposuresp. 249
The Fordoche Companyp. 249
Areas of Operating Exposurep. 249
Cash Flow Exposurep. 253
Long Term Forecasts and Short Term Tradingp. 256
Forward Roll-Overp. 258
The Anatomy of a Swapp. 259
Multinational Cash Flowp. 267
Argument for Centralized Managementp. 267
Consolidating Exposuresp. 268
Exposure Management as a Cost Centerp. 271
Chapter 12 Managing Accounting Exposurep. 273
General Perceptionsp. 273
The Hedge Modelp. 275
Trading Systemsp. 284
The Trading Unitp. 287
Hedging Considerationsp. 289
Chapter 13 Hedge Transactionsp. 293
The Broker/Dealerp. 293
Forward Contract Specificationsp. 296
Futures Contract Specificationsp. 298
Entering The Orderp. 301
Trading Rulesp. 306
Chapter 14 Trading Forwards and Futuresp. 311
Derivative Pricingp. 311
The Forward Contract Hedgep. 313
The Futures Hedgep. 319
Chapter 15 The Option Hedgep. 331
The Anatomy of a Currency Optionp. 331
Evaluating the Premiump. 335
The Option Accountp. 339
Option Strategiesp. 340
Managing Option Positionsp. 349
The Customized Hedgep. 354
Chapter 16 Presentationp. 361
Consultative Sellingp. 362
The First Appointmentp. 363
The Follow-up Proposalsp. 366
Some Common Trapsp. 369
The Individual Buyerp. 372
The Personal Benefitp. 373
The Coachp. 376
The Technical Buyerp. 376
The User Buyerp. 377
The Economic Buyerp. 378
Appendix I Where to Go From Herep. 383
Appendix II Currency Exchanges Around the Worldp. 389
Appendix III The World of Currenciesp. 395
Appendix IV Topic Reviewp. 403
Appendix V Currency Price Chartsp. 493
Endnotesp. 505
Indexp. 511

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