The Korea International Trade Association announced on the 21st that it held an online special lecture on foreign exchange risk management techniques for trading companies through its official YouTube channel.
In the special lecture, exchange rate trends by currency due to large-scale economic stimulus measures and the spread of the Corona 19 vaccine in the United States were reviewed, and exchange risk management measures were discussed.
Lee Seok-jae, a foreign exchange expert at the Korea International Trade Association, said, “If you simply calculate the import/export unit price at the exchange rate at a specific point in time, there may be a currency loss due to sudden fluctuations in the exchange rate.” It should be decided in such a way as to apply the average exchange rate over a period of time in consideration,” he said.
Commissioner Lee advised, “In times of high exchange rate volatility as in recent years, it is necessary to examine trends using technical indicators such as moving average lines and moving average convergence spread index (MACD) for each currency and find an appropriate time to implement short-term hedging.
Kim Hyung-ryul, vice-team leader of the Korea International Trade Insurance Corporation’s foreign exchange risk management team, said, “Good currency risk management is to protect a company’s operating profit from the risk of exchange rate fluctuations by fixing future exchange rates.”
He emphasized that “the foreign exchange insurance of the Korea Trade Insurance Corporation is a convenient and useful management tool for Korean small and medium-sized enterprises, as many related organizations and local governments provide insurance premiums.”
Park Cheon-il, head of the member support division of the Trade Association, said, “It is the time when it is necessary for the import and export companies to actively and actively manage currency risk.”
This special lecture can be viewed again on the YouTube channel of the Korea International Trade Association (youtube.com/kita1946).
If you need individual foreign exchange-related consultation, you can consult with experts for free through the’TradeSOS Practical Trade Consultation Service’ of the Trade Association Trade Call Center (☎ 1566-5114).
/yunhap news
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