Forex Risk Management Strategies for Indian IT Companies | Asian Journal of Pure and Applied Mathema

The impact of currency changes on cash flows of IT service providers (who would be receiving foreign currencies) is examined in this study, as well as potential solutions for minimising transaction risk. The study compares and contrasts three foreign exchange risk management strategies: forward currency contacts, currency options, and cross-currency hedging to determine which is best for specific conditions. Among the forex risk management options studied, the forward currency hedging approach produced the highest mean cash flows and the largest mean percentage gain, according to the findings. Furthermore, the FX risk management solutions examined in the study appear to be more suited for fixed price projects (FPP) than for time and materials projects (T&M) .The FX risk management solutions evaluated in the study appear to be more suited for application support (AS) projects than application development (AD) projects in terms of project category.

Please see the link :- https://globalpresshub.com/index.php/AJPAM/article/view/747