Foreign Exchange Rate Changes Research Articles

Implementasi PSAK 10 dalam Menyusun Laporan Keuangan (Transaksi Mata Uang Asing)

Accounting for foreign currency transactions is an important aspect in the scope of corporate finance, especially in the context of business globalization. PSAK 10 (Statement of Financial Accounting Standards) regulates this aspect and provides guidelines on how companies should account for transactions in foreign currencies as well as related financial reporting. This research explores the implementation of PSAK 10 in preparing financial reports, with a focus on foreign currency transactions. In PSAK 10, companies are directed to use the foreign currency exchange rate on the transaction date to measure transactions in foreign currency. In addition, significant changes in foreign currency exchange rates after the transaction date are also taken into account and recognized as exchange gain or loss. A deep understanding of the application of these provisions is crucial so that financial reports accurately reflect the company's financial position. Through literature research and analysis of accounting practices, this article investigates how companies effectively manage foreign currency risks and present relevant and reliable information in their financial reports. A comparison between the methods used by companies in implementing PSAK 10 and best practices in the industry is explained to provide a comprehensive picture. It is hoped that the results of this research will provide in-depth insight into the challenges, opportunities and best policies in dealing with foreign currency transactions based on PSAK 10. The practical implications of compliance with this standard, as well as the potential impact on corporate financial decisions, will also be reviewed. With a better understanding of foreign currency transaction accounting, companies are expected to improve the quality and credibility of their financial reports in an ever-expanding global market.

Oil Price-Exchange Rate Interdependence: Relevance of Theory of Exchange Rate Overshooting in Nigeria

This article investigated the interdependence between crude oil variability and foreign exchange rate changes in Nigeria. Oil price variability is decomposed into fluctuation on Brent Oil, West Texas Intermediate, OPEC Basket Reference Crude Oils and Bonny Light Crude Oil Price Variability. All the data that used in this research come from secondary sources. Annual time series data for Nigeria are used from 1993 to 2022. The research design for the study is ex post facto research analysis of annual multivariate time series data. The study examined the historical data in order to understand the current state of foreign exchange rate in Nigeria and causal connections crude oil price variability using ARDL Bound test, Johansen approach and Error-Correction Mechanism (ECM) models. In the long run, the coefficient of oil price volatility shows a positive and significant relation with the f o r e i g n e x c h a n g e r a t e at 10 percent level of significance. This implies that a 10 percent, increase in oil price volatility induces foreign exchange rate by 0.61 percent. The positive coefficient of oil price volatility tends to reveal that Dornbusch (1976) Overshooting hypothesis of foreign exchange rate holds for Nigeria. This finding is in conformity with previous studies like (Driskill & McCafferty, 1982); Turnovsky & Bhandari, 1982; Driskill & McCafferty, 1982). Furthermore, the coefficient of BOP and OPEC show a negative and insignificant relationship with the foreign exchange rate in the long run. This implies that BOP and OPEC hav e no impact on foreign exchange rate. This is in contrast with economic theory particularly Dutch diseases proposition and in conformity with foreign exchange rate overshooting theory. The negative nexus can be blamed on the inability of government to manage the foreign exchange supply and demand effectively in the country. Diversifying away from oil to other non-oil activities that would generate foreign exchange sh

Kur Farklarının Nakit Akış Tablosuna Etkisi Üzerine Analitik Çalışma

This study investigates the effect of foreign exchanges differences on the cash flow statement, the applied part of this study depends on the actual real data of one of the banks in Syria related to 2013. There have been significant fluctuations in exchange rates as a result of the Syrian crisis, these fluctuations have affected all financial transactions, especially banks transactions. The study aims to investigate that effect on the cash flow statement practically to provide more transparency and fairness with related to the statement of cash flow. This investigation has been done depending on the financial statements of an Islamic bank located in Syria for the year 2013, during the investigation it has been noticed that some accounts in foreign currency have been fixed balances with no changes during the year such as deposits, but because of the fluctuations in foreign exchange rates those accounts have shown a change in the balance in local currency, which was reflected on the financial statements, especially cash flows statement. The main conclusion of this study is that changes in foreign exchange rates that affect the value of fixed balances should be considered separate from actual changes and should not be included in the preparation of financial statements. Instead, they should be shown as separate items, specifically in the cash flow statement. Additionally, the study recommends that these effects should be disclosed and explained in the financial report to provide more transparency, clarity, and fairness for readers.

Interest rate, foreign exchange and stock performance in a dual banking industry: evidence from Saudi Arabia

PurposeThis study aims to extend the literature by extensively investigating the impact of foreign exchange and interest rate changes on the returns and volatility of bank stocks in Saudi Arabia, which is the largest dual banking industry.Design/methodology/approachThis study employs the generalized autoregressive conditional heteroscedasticity (GARCH) model on stock returns of four fully Islamic Saudi banks and eight conventional Saudi banks.FindingsThe results showed that the foreign exchange rate return has a positive impact on Saudi conventional bank returns, while it has an adverse impact on Saudi Islamic bank returns. Moreover, a higher interest rate return has a positive impact on Saudi bank stock returns implying that the assets side is more sensitive to changes in interest rates than the liability side. Finally, higher foreign exchange and interest rates volatility increases the volatility of Saudi bank returns, where the former has the largest significant impact. Therefore, Saudi regulators should pay more attention to the risk management of their banks because this could threaten the stability of their financial system.Originality/valueTo the best knowledge of the author, this is the first study that tries to extensively analyze the joint impact of foreign exchange and interest rates on bank stock returns and volatility in Saudi Arabia by applying the GARCH model. The study uses a long data set from 2010 to 2019 that includes all Saudi banks and employs four measures of interest rates to increase the robustness of the results.

РИСКИ АНТИКРИЗИСНОГО УПРАВЛЕНИЯ В СОВРЕМЕННОМ БИЗНЕСЕ

The article discusses the concept of anti-crisis management, its role and significance in the modern economic environment. A classification of risks is presented, including economic, political, social, technological and financial. The author presents the characteristics of each type of risks, their causes and consequences for the business environment. Economic, political, social risks require effective management through identification, assessment and control, as well as the development of management strategies and the use of appropriate tools to ensure economic stability and social development. Technology risks include information security, data privacy issues, technology system failures, vulnerability to cyberattacks, and negative health and environmental impacts. Financial risks are the possibility of financial loss or uncertainty associated with external and internal factors such as economic fluctuations, changes in foreign exchange rates, financial mismanagement and poor investment decisions. Particular attention is paid to the methods of risk analysis, including the assessment of the probability and impact of risks, as well as the development of risk management strategies.

Japan and the United Kingdom: The Inflation Irrelevance Proposition

This paper is about the generalized proposition of inflation irrelevance. The weak-form version of inflation irrelevance holds that stock prices are independent of inflation rates. The semi-strong form version is that stock prices are independent of both domestic and foreign inflation rates. The strong, or generalized, version is that stock returns are independent of all three rates, domestic and foreign inflation rates, and changes in foreign exchange rates. Overall, the three forms fail to be rejected separately and jointly under conventional marginal significance levels. The conclusion from this paper is that inflation irrelevance, or nominal neutrality, is a common characteristic in the two countries studied, Japan and the United Kingdom. Therefore, the statistical evidence is mounting manifestly, and is pervasive and applies to diverse economies, among which Japan and UK. This regularity amounts to an international stylized empirical fact that cannot be ignored.

Analysis of Foreign Exchange Using Perceptron and Genetic Algorithm Machine Learning (GALM)

Foreign Exchange (FOREX) is the trading of one cash against another. FOREX rates are affected by multitudinous affiliated plutocrat-related, political and internal factors and along these lines awaiting it may be a worrisome errand. The individualities included within the field of universal fiscal trade have looked for interpretations of rate changes and latterly, trusting to ameliorate vaticination capabilities. It's this capacity to directly prevision FOREX rate changes that allow for the maximization of profit. Trading at the correct time with fairly correct procedures can bring huge benefits, but an exchange grounded on off-base development can risk big mischances. numerous styles to prognosticate the FOREX rate consolidate quantifiable examination, time arrangement examination, featherlight systems, brain associations, and mix systems. These styles involve the sick impacts of the issue of directly anticipating the exchange. A Perceptroning presents information and predicts results that regard certain situations of unpredictability or randomness, and over inheritable Algorithm Learning Machine are proposed to prognosticate the longer-term pace of the FOREX show since can combine top and technical FOREX Information for Fundamental and Technical Analysis. The free factors considered in this consideration were the trade rates of China, Japan, Europe, Gold and Unrefined Oil to dissect the Rupiah trade rate inferior variable. For the examination, USDIDR is switching scale from the forex stamp. The Combination Stochastic and inheritable Algorithm Learning Machine Model fulfilled a MSE of 0.01 and a MAE of0.0082 during the preparation and testing stage.

The Effects of the Volatility Changes in Exchange Rates and Interest Rates from Historical Shocks on the Non-Performing Loans in Turkish Economy

Historical shocks (Lehman Brothers bankruptcy (15 September 2008), the FED?s tapering decision (18 December 2013), the CBRT?s interest rate decision (28 January 2013)) had significant impact on global and domestic financial markets, especially nonperforming loans (NPLs). In this context, main aim of this study is to analyze how volatility changes in exchange rates and interest rates triggered by these historical shocks affect consumer and industrial nonperforming loans in Turkish economy by using quantile regression techniques. The results showed that shocks that cause volatility changes in foreign exchange rates and interest rates have important effects on NPLs in the Turkish banking industry.

THE ELASTICITY OF EXPORTING THE MINING QUARRYING PRODUCTS TO FOREIGN EXCHANGE RATE CHANGES

Elasticity examining the exporting the products to foreign exchange rates, has been subject to so many studies. Exports are expected to increase in the case of the depreciation of the domestic currency in the economies where exports and imports are sensitive to foreign exchange rate. While foreign currency appreciation increases the profitability of the firms also increases because their costs are in domestic currency. This paper investigates how exchange rate changes affect mining & quarrying exports in Turkey. In this paper we aim to identify the elasticity of mining & quarrying exports to dollar exchange rate changes. Mining & quarrying whose development are mostly dependent on nature sector exports which is predominantly sensitive to the dollar exchange rate, was tried to be analysed by using the least squares method. Data representing the exchange rate for monthly average dollar-selling prices between the years of 2005-2017, obtained from the data system of the TCMB (The Central Bank of the Republic of Turkey) is used. In addition this, export data denominated in dollars for mining & quarrying products for the same period, were also obtained from the TUIK (Turkish Statistical Institute). Data obtained from those for 156 periods were analysed through the SPSS statistical packaged software program. As a result, mining & quarry exports are sensitive to the dollar exchange rate and a 1% increase in dollar exchange rate increases mining & quarrying exports by approximately $ 8,8 million. Besides this result, a one percent (1%) standard deviation increase in dollar exchange rate leads to a 0.65 standard deviation increase in exports of mining & quarrying products. These findings are consistent with the literature on elasticity to foreign exchange rate changes.

Measuring the Effects of Changes in Foreign Exchange Rates on Determining the Commercial and Industrial Profits Tax Base: A Standard Study on Commercial Banks Operating in the Republic of Yemen

The study aimed to measure the effects of changes in foreign exchange rates on determining the commercial and industrial profits tax base, through a standard study on commercial banks operating in the Republic of Yemen. To achieve this goal, the study relied on annual time series of the published financial statements of banks operating in the Republic of Yemen for each of the foreign currency position of assets and liabilities during the period (2011-2017). The Statistical Analysis Software (EViews V.10) was used in data analysis. The results showed that changes in foreign exchange rates affect the determination of the commercial and industrial profits tax base. The study recommends adherence to the requirements of International Accounting Standard No. (21) when measuring the effects of changes in foreign exchange rates on determining the commercial and industrial profits tax base, in a manner that does not conflict with the provisions of Yemeni Law No. (17) of 2010 “income taxes” and its amendments.

Measuring the Effects of Changes in Foreign Exchange Rates on Determining the Commercial and Industrial Profits Tax Base: A Standard Study on Commercial Banks Operating in the Republic of Yemen

The study aimed to measure the effects of changes in foreign exchange rates on determining the commercial and industrial profits tax base, through a standard study on commercial banks operating in the Republic of Yemen. To achieve this goal, the study relied on annual time series of the published financial statements of banks operating in the Republic of Yemen for each of the foreign currency position of assets and liabilities during the period (2011-2017). The Statistical Analysis Software (EViews V.10) was used in data analysis. The results showed that changes in foreign exchange rates affect the determination of the commercial and industrial profits tax base. The study recommends adherence to the requirements of International Accounting Standard No. (21) when measuring the effects of changes in foreign exchange rates on determining the commercial and industrial profits tax base, in a manner that does not conflict with the provisions of Yemeni Law No. (17) of 2010 “income taxes” and its amendments.

A comparative study of strategies suitable for hedging the foreign exchange rate risk of a big company

As a result of the internationalization of the economy, foreign exchange transactions and, in this context, risks related to changes in foreign exchange rates appear in the lives of more and more businesses. Ignoring these risks or managing them inappropriately can also impair the company’s ability to generate income, and even cause serious - in some cases unsolvable - liquidity disturbances. In our study, starting from the example of a large domestic company, we examined different strategies for hedging foreign exchange exposure. Due to length limits, we did not have the opportunity to present all possible strategies, but in relation to the hedging strategies we examined, we tried to reveal their possible advantages, dangers, and cost implications. We did all this in order to find the optimal hedging strategy/strategies for the company. During our investigation, we requested offers from 6 financial institutions. The level of the exchange rate to be protected was set at EUR/HUF 410.00. We found that, in the current market conditions, out of the four transactions we examined, three transactions (the forward, the zero-cost collar strategy and the participating forward) can be supported from the company’s point of view.

Changing of Currency Exchange and Its Harmony with Accounting Iraq’s Rules and International Accounting

The aim of the study was how the harmony between the Iraqi accounting rules and international standards and is there a difference between rule and the standard, which has been the International Standard No. (21) the effects of changes in foreign currency exchange rates and conduct a comparative analysis with the Iraqi accounting rules rule number (4) the effects of changing prices in foreign currencies have reached your search several conclusions the most important of the existence of a gap between the accounting Qaeda applicable between the international standard requirements represented by failure to disclose the change in the classification of foreign operations and export rules Iraqi accounting without cause by sufficient explanations and cases of practical application of some processors contained therein leading to interpretations and opinions of personality.

تعويم العملة وأثره في الالتزامات والعقود الآجلة في الفقه الإسلامي

تعويم العملة وأثره في الالتزامات والعقود الآجلة في الفقه الإسلامي ياسر حسن عبد التواب. قسم الفقه وأصوله، قسم الدراسات الإسلامية، کلية الآداب، جامعة المنيا، المنيا، مصر. البريد الإلکتروني: prof_yaser@mu.edu.eg الملخص: تحاول هذه الدراسة أن تبحث في أثر تعويم العملة أوما يسمى بتحرير سعر الصرف على العقود والالتزامات الآجلة، لما ثبت أن تغيرات سعر الصرف الأجنبي مما يؤدي إلى ارتفاع أسعار السلع المحلية. وتهدف الدراسة إلى بيان أثر تعويم العملة على الالتزامات والعقود الآجلة التي تم الاتفق عليها قبل عملية التعويم من وجهة نظر الفقه الإسلامي. وقد اعتمد البحث على المنهج الاستقرائي التحليلي المقارن من خلال تتبع أراء الفقهاء وتحليلها ومقارنتها واختيار الراجح منها. ومن أهم نتائج الدراسة أن الأثر المترتب على العقود والالتزامات الآجلة إذا تغير سعر الصرف نتيجة التعويم وکان المطلوب أداؤه نقدا من جنس واحد أو جنسين مختلفين، استحباب رد المثل عند وجوده والقيمة عند انعدامه بحساب يوم الرد لا يوم الأخذ. الکلمات المفتاحية: تعويم، سعر الصرف، عقود، التزامات، آجلة، فقه إسلامي. Currency Floatation and its Impact on Obligations and Deferred Contracts in Islamic Jurisprudence Yasser Hassan Abdet -Tawab Department of Islamic Studies, Faculty of Arts, Minia University, Minia, Egypt. Email: prof_yaser@mu.edu.eg Abstract: This study attempts to examine the impact of currency floatation or the so-called exchange rate liberalization on deferred contracts and obligations, as it has been proven that foreign exchange rate changes lead to an increase in the prices of local commodities. The study aims to show the impact of currency flotation on the obligations and deferred contracts that have been agreed upon before the flotation process from the perspective of Islamic jurisprudence. The present study adopts an inductive, analytical, and comparative approach. It examines the opinions of the jurists, analyzes these opinions, compares them and chooses the most preponderant opinions. One of the most important conclusions of the study relates to the consequential impact on deferred contracts and obligations when the exchange rate changes as a result of the flotation and it is required to be paid in cash of same currency or two different currencies. In this case, it is desirable to return the money in the same currency if this is available or the same value of the money if the same currency is not available through calculating based on the day of return, not the day of taking the money. Keywords: Flotation, exchange rate, contracts, obligations , deferred , Islamic jurisprudence.

Makroekonomiczne determinanty ryzyka kredytowego w Polsce ze szczególnym uwzględnieniem kursów walut obcych

The purpose of the article. The aim of the study is to show the impact of the key macroeconomic determinants of the credit risk of the banking sector in Poland in 2011–2020. This aim was achieved by analysis of the Pearson correlation coefficient and econometric models allowing to determine the impact of individual variables on the NPL index.
 Methodology: The empirical part includes the presentation and description of basic descriptive statistics, as well as the calculation of the Pearson correlation coefficient with the interpretation of the obtained results. The dynamic econometric model describing the variability of the NPL ratio was built using mainly macroeconomic variables.
 Results of the research: Research has shown the impact of changes in the unemployment rate and the inflation rate on credit risk. On the other hand, the impact of economic growth on the NPL ratio in the analyzed period was not statistically significant. The relationship between credit risk and changes in foreign exchange rates (CHF, USD, EUR) turned out to be negative in the analyzed period, which means that the increases in exchange rates of these currencies did not result in a significant burden of credit risk in the banking sector in Poland.

Analysis of the relationship between exchange rate changes and profitability in Turkey: example of BIST manufacturing sector

Purpose- The aim of this study is to empirically investigate the relationship between the change in exchange rates and the profitability of firms in Turkey. The changes in real effective exchange rate as the change in exchange rates criteria and return on assets as well as return on equity are considered for measuring profitability. Methodology- The sample of the research consists of 37 companies that are listed in BIST 100, operating in the manufacturing sector and whose data can be accessed completely. The data of the companies within the scope of the research were obtained from the official websites of Borsa Istanbul, Public Disclosure Platform, and Finnet and made ready for analysis. For the purpose of the research, panel data analysis, panel unit root tests, panel regression analysis, causality analysis, and moderating effect analysis were carried out. Findings-. Changes in foreign exchange rates, foreign sales and asset size of the companies do not have any significant impacts on the return on assets and return on equity during the period between 1999-2019 in Turkey. It has also been found that asset size, foreign sales, and change in exchange rates are the reasons for the return on assets and similarly, asset size, foreign sales, and change in exchange rate are the reasons for the return on equity. Finally, changes in the foreign exchange rate and export sales have a short-term causal relationship with both return on assets and return on equity, and changes in the foreign exchange rate and total assets have a moderating effect on return on assets. Conclusion- As a result of the research, it has been revealed that firms are affected by changes in foreign exchange rates with a delay. It means firms were likely be affected by the changes in exchange rates with a lag, and similarly, the changes in exchange rates affected financial performance with a lag. It has also been revealed from the research that firms effectively use internal and external hedging methods that help reduce the adverse impacts of the changes in foreign exchange rates.

Foreign Exchange Rate and Consumer Price Changes in the Nigerian Economy

Foreign Exchange Rate and Consumer Price Changes in the Nigerian Economy

Revenue management of changes in foreign exchange rates - case study of production companies with foreign participation in the Czech Republic

Revenue management of changes in foreign exchange rates - case study of production companies with foreign participation in the Czech Republic

IAS 21 - The Effects of Changes in Foreign Exchange Rates: A Review of Concepts and Related Issues

As interaction of companies across borders increases, accounting for foreign exchange transactions as well as translation of financial statements has become an important topic. An entity is exposed to foreign exchange gains or losses through investments or balances in a foreign currency or ownership in a foreign operation. In order to assess these risks and the related impact, foreign currency transactions and balances should be accounted accurately. IAS 21 aims to set the framework for inclusion of foreign currency transactions and foreign operations in the financial statements of an entity and translation of financial statements into a presentation currency. Foreign exchange transactions and translations inevitably affect an entity’s net income and/or other comprehensive income. Despite IAS 21 setting the framework for accounting for these effects, management still may use some judgement in practice. When analyzing financial statements, users of information should be aware of the underlying methods used for accounting for exchange rate differences since results of analysis of financial statements is largely dependent on these methods.

Exchange Rate Modeling under Unconventional Monetary Policy on a European Panel Sample

Following the latest subprime crisis, central banks introduced several unconventional instruments which had spillover effects on foreign exchange rates. The aim of our paper is to explore whether the use of zero lower bound (ZLB) and unconventional instruments has an impact on the changes in foreign exchange rates. By running dynamic panel regressions, we analysed this issue on a sample of 7 European central banks. Based on our results, unconventional monetary policy had a significant impact on the exchange rate fluctuations in the short term, even with the use of instruments where there was no targeted exchange rate regulation.