|UDC 336.743:658.1:339.9||DOI: https://doi.org/10.31617/zt.knute.2018(101)02|
ORCID ID: 0000-0002-3839-6018
Doctor of Economics, Professor, Head of the Department of International Economic Relations, of Kyiv National University of Trade and Economics
19, Kyoto str., Kyiv, 02156, Ukraine
ORCID ID: 0000-0002-9191-7871
Candidate of Economic Sciences, Associate Professor at the Department of International Economic Relations, of Kyiv National University of Trade and Economics
19, Kyoto str., Kyiv, 02156, Ukraine
FUTURES CONTRACT: MINIMIZING TOOL OF CURRENCY RISKS FOR FOREIGN ECONOMIC ACTIVITY
Background. One of the financial risks inherent in foreign economic activity is currency risk, which arises as a result of exchange rate fluctuations. For Ukraine, which is characterized by excessive openness and permanent devaluation of the hryvnia to the US dollar and the euro, the problem of currency risk minimization becomes particularly relevant.
Analysis of recent researches and publications. The problem of managing currency risks at domestic enterprises - subjects of foreign economic activity are studied by Ukrainian researchers, because the Association Agreement between Ukraine and the EU promotes the growth of export-import operations, which leads to an increase in settlements in foreign currency. However, the issue of achieving positive effects of currency risk management in terms of strengthening the processes of European integration using futures contracts is not sufficiently highlighted.
The aim of the article isthe analysis of the influence of fundamental factors on the dynamics of the exchange rate and the identification of problems and prospects for the development of derivative financial tools as a means of minimizing currency risks.
Materials and methods. The works of domestic and foreign scientists, statistics of the State Customs Service of Ukraine, and the National Bank of Ukraine are used. Methods of system generalization, qualitative and quantitative analysis, comparison, grouping are applied.
Results. The source of currency risk is the uncertainty of the exchange rate, which leads to currency losses due to changes in the exchange rate of foreign currency in relation to the national in the implementation of foreign trade operations. World currency exchange risk management uses derivative financial instruments, both non-exchange, and exchange-forwardand futures contracts. The development of the derivative tools market in Ukraine is low and characterized by a declining trend. The problems that impedethe use of futures in the Ukrainian market are identified –the imperfection of the regulatory framework, the divergence in terminology, the lack of common approaches to the regulation of the stock exchanges, and the non-compliance of Ukrainian legislation with the legislation of the European Union. To resolve them, it is proposed to make changes to the basic normative acts of Ukraine in order to create the legal field and settlement of relations associated with derivative financial tools, in particular futures contracts.
Conclusion. Expansion of international cooperation of Ukraine, growth of export-import operations in the terms of foreign trade liberalization and transition to a flexible exchange rate formation increase the probability of occurrence of various risks in foreign economic activity, which actualizes problems of development and use of currency futures to minimize them. For the effective use of currency futures by enterprises –entities of foreign economic activity it is necessary to create a coherent legal and regulatory framework for the issuance, circulation and redemption of securities with clear terminology and the definition of guarantees for the implementation of futures contracts, taking into account the provisions of the legislation of the European Union.
Keywords: currency risk, exchange rate, financial expenses, forecasting methods, futures operations, forward contract.
2. Sviders’ka, A. V. (2016). Upravlinnja ryzykamy zovnishn’oekonomichnoi’ dijal’nosti pidpryjemstva [Risks management of enterprise foreign economic activity]. Candidate’s thisis. Hmel’nyc’kyj [in Ukrainian].
3. Mazaraki, A. A., Mel’nyk, T. M., & Generalov, O.V. (2018). Upravlinnja ryzykamy v zovnishn’oekonomichnij dijal’nosti [Risk management in foreign economic activity]. Kyi’v: Kyi’v. nac. torg.-ekon. un-t [in Ukrainian].
4. Kolodzijev O. M., & Kocjuba O. V. (2016). Analiz perspektyv rozvytku rynku deryvatyviv v Ukrai’ni [Analysis of prospects of the derivatives market development in Ukraine]. Problemy ekonomiky – Problems of the economy, 1, 242-248 [in Ukrainian].
5. Pahnenko, O. M., Glyboka, N. A., & Chernenko, Je. O. (2017). Valjutni deryvatyvy jak instrumenty hedzhuvannja valjutnyh ryzykiv v Ukrai’ni [Currency derivatives as tools for hedging currency risks in Ukraine]. Groshi, finansy i kredyt – Money, finance and credit, 10, 62-68 [in Ukrainian].
6. Ksendzuk, V. V. (2016). Metody Upravlinnja valjutnymy ryzykamy u zovnishnij torgivli [Methods of managing currency risks in foreign trade]. Visnyk Zhytomyrs’kogo derzhavnogo tehnologichnogo universytetu – Bulletin of Zhytomyr State Technological University, 1. 142-150 [in Ukrainian].
7. Hughes, S., & Redhead, K. (1988). Financial Risk Management. Gower: Gower Publishing Ltd, 257 p. [in English].
8. Nacional’nyj bank Ukrai’ny: oficijnyj sajt [National Bank of Ukraine: official site]. bank.gov.ua. Retrieved from https://www.bank.gov.ua [in Ukrainian].
9. Vitlins’kyj, V. V. (2008). Ryzykologija v zovnishn’oekonomichnij dijal’nosti [Risk in foreign economic activity]. Kyi’v: Centr navch. l-ry [in Ukrainian].
10. Antonov, S., & Shyshkov, S. (2009). Organizacija obigu valjutnyh deryvatyviv v Ukrai’ni: pytannja teorii’ i praktyky [Organization of the circulation of currency derivatives in Ukraine: issues of theory and practice]. Rynok cinnyh paperiv Ukrai’ny – Securities Market of Ukraine, 5-6, 37-56 [in Ukrainian].
11. Sych, Je. M., Il’chuk, V. P., & Gavrylenko, N. I. (2012). Rynok finansovyh poslug [Financial services market]. Kyi’v: Centr navch. l-ry [in Ukrainian].
12. Prudko, A. (2006). Stanovlennja ta rozvytok rynku f’juchersnyh kontraktiv u svitovij praktyci ta v Ukrai’ni [Formation and development of futures contracts market in world practice and in Ukraine]. Naukovi zapysky – Scientific notes. (Vol. 53), (pp. 93-96) [in Ukrainian].
13. Pidsumky torgiv na PAT «Ukrai’ns’ka birzha» za 2017 r. [Bidding results of the Public Joint Stock Company «Ukrainian Exchange» for 2017]. Retrieved from http://www.ux.ua/a8801/?nt=304 [in Ukrainian].