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Reinvoicing Centre

Reinvoicing Center The reinvoicing center in Mncs is Baku to’ a clearing h~use .n a’ banking system. It may be beneficial for an ENC’ to create a     separate center 10 manage foreign exchange risk exposure. Such  a center, known as reinvoicing...

Netting

Netting It may not be uncommon among international companies to have mutual trading among themselves  like multinational  companies. Foreign exchange risk exposure of such companies can be  ‘!lib~antisocially reduced if foreign designated receivables and...

Indexation Clauses

Indexation Clauses Yet another technique of hedging risk is to provide clause (s) related to the export and import of goods and services between the  two parties in contracts agreements. Obviously, the terms and conditions included in the contract depend on the...

Leading and Lagging

Leading and Lagging  Sound international financial management practices warrant that the rums engaged in international operations should endeavor  o have their assets pitta strong currency and liabilities in a weak  currency. This may be achieved with the help of the...