Study of exchange risk management in the import processes of merchants in the El Hueco sector of the city of Medellin
DOI:
https://doi.org/10.33131/24222208.355Keywords:
Exchange rate risk, currency risk hedging, financial derivates, financial derivate, import processesAbstract
Today, we live in an increasingly globalized world. Information and communication technologies (ICTs) allow companies to move in a more competitive environment and therefore better planning and alignment of their business goals and objectives are required. In addition, international financial events increasingly affect local markets, causing unexpected fluctuations in exchange rates, variations in interest rates, or falls in stock market indices, which has a significant impact on performance and corporate value. For this reason, it is essential that companies correctly know the tools available in the market to cover themselves against negative changes in the environment and, at the same time, make sound investment and financing decisions. This article focuses on the analysis of the coverage strategies developed by the merchants of the sector of "El Hueco" of Medellín in the import processes. The analysis was carried out with a sample corresponding to 12 merchants with higher purchase volumes in the foreign market and with more experience as importers, through two sections with semi-structured interviews and the development of a survey. In the first section, it was possible to detail the main variables and characteristics of importers. In the second section, information was obtained regarding the management of all the risks inherent in its commercial activities. Financial derivatives mean for these economic agents the optimal instruments for managing foreign exchange risk, which contribute to the stabilization of cash flows in the cost item, and the importance of these instruments as generators of corporate value is highlighted.
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