The use of foreign exchange derivatives by exporters and importers the Chilean experience

This research note analyses the use of foreign exchange (FX) derivatives by Chilean exporters and importers (EXIM) that conduct international transactions in foreign currencies. It seeks to answer the questions of how many derivatives are used, how are they used and what are their characteristics. T...

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Detalles Bibliográficos
Autor principal: Miguel L., Faruk
Formato: Nota de Investigación
Lenguaje:English
Publicado: Banco Central de Chile 2020
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Acceso en línea:https://hdl.handle.net/20.500.12580/4858
https://ideas.repec.org/a/chb/bcchni/v19y2016i3p090-109.html
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Sumario:This research note analyses the use of foreign exchange (FX) derivatives by Chilean exporters and importers (EXIM) that conduct international transactions in foreign currencies. It seeks to answer the questions of how many derivatives are used, how are they used and what are their characteristics. These questions are highly relevant as EXIM firms generate currency mismatches between their assets and liabilities and potentially increase their exposure to financial instability due to exchange rate fluctuations.