The currency risk management in the real sectors of the economy based on volatility

Abstract

The article is devoted to the management of foreign exchange risk in the real economy. The importance of this problem is caused by the high volatility of exchange rates, which is caused by the high risks associated with unexpected changes in exchange rates. This is particularly acute problem for enterprises engaged in foreign trade activities. In the paper we propose a method for managing the currency risk, based on the technology of volatility trading in the financial market. Comparisons of the proposed method with known ones of currency risk management [1-4] are considered.