The main foreign exchange linked derivatives are currency forwards, currency futures, currency options and currency swaps and combination of the above.
For borrowers, access to the currency derivatives ensures that they have access to the lowest cost capital markets around the world.
The integration of international capital markets through foreign exchange derivatives markets encourages a competitive cost of capital.
In addition to this integration role, foreign exchange derivatives serve a very real purpose.
Foreign exchange fluctuations affect the competitive positions of companies, the cost of borrowing abroad, and the returns on global investment portfolios.
Precise commercial and financial objectives can be managed through such derivatives.
For borrowers, access to the currency derivatives ensures that they have access to the lowest cost capital markets around the world.
The integration of international capital markets through foreign exchange derivatives markets encourages a competitive cost of capital.
In addition to this integration role, foreign exchange derivatives serve a very real purpose.
Foreign exchange fluctuations affect the competitive positions of companies, the cost of borrowing abroad, and the returns on global investment portfolios.
Precise commercial and financial objectives can be managed through such derivatives.