. We find that, depending on whether futures contracts are used for risk reduction (i.e., hedging) or risk taking (i …

. We find that, depending on whether futures contracts are used for risk reduction (i.e., hedging) or risk taking (i …

We document the exchange rate hedging channel that connects country-level measures of net external financial imbalances … movements. We present a model demonstrating that exchange rate hedging coupled with intermediary constraints can explain these … currency hedging channel of exchange rate determination in both the conditional and unconditional moments of exchange rates …

We examine the impact of corporate currency hedging on economic stability by introducing hedging activity in a Mundell … size as well as hedging costs. The results indicate that, with an increasing fraction of hedged firms in an economy, the … magnitude of a crisis decreases and from a specific hedging level onwards currency crises are ruled out. In order to improve …

short and long-run. They also suggest the use of “natural hedging” as an effective strategy to reduce exchange rate risks …

The principle of Wa'd or promise can be used to structure innovative shariah compliant hedging instruments …. Conventional hedging products such as forward currency contracts and currency swaps are prohibited in Islamic Finance principally … banks, specifically in its application as an Islamic hedging instrument. Based on a survey of the banks' official …