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GO TO MAIN PAGE FOR ALL TOPICS COVERED UNDER FOREIGN EXCHANGE MANAGEMENT From experience,I notice that the least area the financial executive would like to touch on is the policy and procedure on the foreign exchange management. The main excuse is that the company does not frequently transact in FX dealings hence FX policy [...] GO TO MAIN PAGE FOR ALL TOPICS COVERED UNDER FOREIGN EXCHANGE MANAGEMENT In the previous article,we have discussed about the matching internal hedging method. This article is on the next method which is the: Netting Method This method is similar to matching. The only difference is that matching includes the cash-flows of third parties whilst netting [...] GO TO MAIN PAGE FOR ALL TOPICS COVERED UNDER FOREIGN EXCHANGE MANAGEMENT The previous article dealt with the Leading and Lagging Method of internal hedging. Let’s move on to the next method which is the: Matching Method Here the intention is to offset all the company’s foreign currency payables with the appropriate foreign currency receivables. [...] GO TO MAIN PAGE FOR ALL TOPICS COVERED UNDER FOREIGN EXCHANGE MANAGEMENT Let’s have an illustration to demonstrate how we can manage a transaction exposure risk:Say if your company has just bought some chemical products from a Japanese supplier. This deal is denominated in Japanese Yen. You have 90 days to make payment and payment [...] |  FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach. | |||||
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