Business, Management and Accounting
6 years ago

Indian Pharma Industry Embraces Forward Contracts to Manage Forex Risks.

Jindal Journal of Business Research
An Analysis of Foreign Exchange Risk Management: Techniques Employed in Indian Pharma Industry
Prakash Basanna, K. R. Pundareeka Vittala

Paper Summary

Related papers

Business, Management and Accounting
3 years ago

Protect Your Business from Currency Risks with Hedging Strategies

Risk Management
2 views
Economics, Econometrics and Finance
4 years ago

Central banks' intervention strategies shape global currency values and stability.

International Finance
2 views
Economics, Econometrics and Finance
4 years ago

Foreign exchange market impacts global economy and competitiveness through currency rates.

Development in Serbia
1 view

The article analyzes how Indian pharmaceutical companies manage foreign exchange risks. They use techniques like forwards, futures, options, and swaps to protect against currency fluctuations. Companies with high growth potential and financial constraints tend to use these currency derivatives more. The study found that USD and EUR are the most commonly used currencies in the forex market. Among the various hedging techniques, forward contracts are considered the most effective and easy to use for managing currency exposure.