One of the methods of hedging is the conclusion of urgent foreign exchange transactions for forward transactions.

Terms of payment depend on the countries participating in the foreign trade contract, trade procedures, type of goods, market conditions, the presence of intergovernmental agreements, banking traditions, etc.

For example, raw materials and food products are sold for cash, cars and on credit. Exchange goods (grain, metals, timber, petroleum products) are sold and purchased on the basis of standard conditions adopted in world practice.

All monetary and financial parties to the contracts are specified by the parties on the basis of agreements.

In trade between many countries as the currency of the price used the main hard currency – US dollars, German mark, pound sterling, French franc, Swiss franc, Japanese yen. At clearance, the payment currency is determined at the current market rate on the day of payment.

When importing goods from developed capitalist countries, prices are fixed in the currency of the supplier country, from developing countries – in the currency of a third country, and payments are made in the same currency.

When buying goods from Germany, Holland, Switzerland, the currency of the price is mainly determined in US dollars, and the currency of payment – in the currencies of these countries.

Currency risks

Particular attention should be paid to currency risks arising from export-import transactions and the sale of goods on credit in the event of a change in the exchange rate of foreign currency against the national or with a decline in its purchasing power due to deteriorating trade conditions …

Safeguards are used to reduce currency risks. There are bilateral and unilateral reservations. In the first case, the recalculation of payment amounts when changing the exchange rate of the payment and this method is used mainly in trade with developing countries. Unilateral reservations are usually applied in trade with developed capitalist countries and the amount of payment is also transferred on their basis.

The reservation may be the same currency when the currency of the price and payment set depending on the exchange rate of any other currency. With multi-currency restrictions, the amount of cash payments is adjusted depending on the change in the arithmetic mean of several currencies. The index restriction is used to protect against a decrease in the purchasing power of currencies. The amount of payment varies depending on the movement of the price index. Sometimes “variable prices” are used, ie the change in the price of a good for a good is taken into account.

Banks can insure currency risks by creating counterclaims and liabilities in a foreign currency (hedging). One of the methods of hedging is the conclusion of urgent foreign exchange transactions for forward transactions. In forward transactions, a bank or trading firm buys a spot currency at the current exchange rate and sells one temporarily at the forward rate, which is usually different from the spot rate. You can do the opposite operation: make a forward purchase of one currency and sell another at the spot rate.

If the “spot” rate is lower than the “forward” rate, then this difference is called the premium, and if the former is higher than the latter, then this excess is called the “discount”.

Here is an example of hedging to insure an exporter, who must receive payment in dollars in three months. The exporter applies to the bank for insurance. The bank, knowing that in three months there will be a dollar income, immediately finds a buyer of this amount and asks for a loan for a period of 3 months.

Dollars are sold, for example, for French francs, this amount is contained in a three-month term deposit. In the event of a depreciation of the dollar against the franc, the exporter will lose out on the trade contract through a forward agreement.

Then the bank buys the dollars at the new rate when they increase, pays the lender the dollar amount and the exporter, thanks to the deposit there are no losses.

Currency options are also used. This is a privilege obtained by paying a known premium by one person (bank, firm) in order to give another person the right to either buy or sell currency at an agreed rate on any day during a certain period, or withdraw from the transaction without compensation. A currency option gives its buyer the right to choose between the execution or the agreement of waiver of obligations under the relevant conditions.

Foreign exchange futures help to avoid losses from exchange rate fluctuations. These are futures agreements under which the purchase and sale of currency at a fixed rate at the time of the transaction. The operation takes place over a period of time up to 1-3 years.

Ordinary futures transactions do not end with the provision of available funds, because the purpose of such transactions is hedging. If the sale of currency was not carried out, then in the case of a weakened exchange rate would be a direct loss.


Problems of formation and comparative analysis of possibilities of free economic zones of Ukraine. Abstract

Comparative analysis of opportunities for business entities. Some problems of formation of special (free) economic zones in Ukraine

Comparative analysis of the capabilities of business entities

The creation of the first in Ukraine experimental special customs zone “Sivash” is caused by the need to develop new approaches to the implementation of economic reforms in Ukraine, the introduction of new forms of business. The introduction of a special regime of investment activities in the Donetsk region and in the special zone “Slavutych” provides for the creation of jobs and employment of workers laid off in connection with the closure of unprofitable mines and the Chernobyl nuclear power plant.

The Yavoriv zone was created to ensure the employment of employees of the Yavoriv State Mining and Chemical Enterprise “Sulfur” to solve environmental problems, use the potential of the region’s economy due to a favorable border location (Krakovets highway).

The most attractive in special areas is the availability of tax benefits. The legislation on SEZs does not define a single, uniform for all template for granting tax benefits. For example, in SEZ “Slavutych” in the territories of priority development of Donetsk region and in the complex production zone “Yavoriv” to obtain tax benefits or the status of the subject of the zone it is necessary to ensure the introduction of the amount of investment specified by law.

There is also a difference in approaches to licensing (quotas) of activities and movement of certain types of goods, making payments to various funds, taxation of income of non-residents, collection of customs duties and VAT when importing goods for use in the zones …

In the case of taxation in SEZs, which have the status of a special (free) customs zone (“Donetsk”, “Azov”, “Krakovets”, “Technopark” “Transcarpathia”), it should be noted that there are some common points in the movement of goods through it boundaries (Table 2). A characteristic feature of free customs zones is the recognition of their legislation as not forming part of the customs territory of Ukraine, so the tax regime for the movement of goods across the borders of these zones is common to all, except for the Krakovets highway; exemption from customs duties shall not apply to goods sufficiently processed or produced on its territory upon importation into the customs territory of Ukraine.

1. PkEEZ “Sivash”

North Crimean Experimental Economic Zone “Sivash” was established in 1996, the term of operation is 5 years. The subjects of the zone may be enterprises that implement investment projects approved by the Cabinet of Ministers. There are no minimum investment requirements.

Benefits. Projects, the implementation of which is related to the provision of benefits to the subjects of the “Sivash” zone are approved by the Cabinet of Ministers of Ukraine after consideration and approval by the Supervisory Board for control over the experiment in the North Crimean experimental economic zone.

Registration of a business entity as a subject of the Sivash zone is subject to the approval of the investment project by the Cabinet of write my lab report for free Ministers, as well as the conclusion by the business entity of an agreement with the zone administration on project implementation, which includes obligations of the parties, including obligations. commitment of the business entity to open accounts in an authorized bank (bank branch) located in the “Sivash” zone.

The basis for exemption of raw materials, supplies, equipment and equipment (except excisable goods) imported into Ukraine by the subjects of the zone for the needs of their own production, from import duty and value added tax is their written declaration at customs, which carries out customs clearance, as those imported exclusively for the needs of own production for the purpose of realization within this zone of the investment project approved in accordance with the established procedure. The purpose of the goods imported by the subjects of the Sivash zone must be confirmed in writing by the administration of the Sivash zone.

The funds received through the provision of income tax exemptions to the subjects of the Sivash zone are directed exclusively to the implementation of investment projects within the zone.

In addition to income tax benefits, there is a reduction of up to 50% of the current rate of value added tax of own production.

When exporting goods of own production, the list of which is approved by the Cabinet of Ministers of Ukraine, the licensing and quota regime is not applied. Exemption from the mandatory sale on the interbank foreign exchange exchange of foreign exchange earnings at this time does not apply on the basis of the resolution of the Cabinet of Ministers of 27.08. 97 pp. 37937.

2. Donetsk region

The purpose of creating special economic zones in the Donetsk region and introducing a special regime of investment activity in the territories of priority development (territories are declared 17 settlements of Donetsk region) is to attract investment in priority industries to create new jobs and employ workers laid off due to closure. , restructuring of mining and other enterprises, introduction of new technologies, modernization of existing industries, development of foreign economic relations, increase of supplies to the domestic market of high quality goods and services, creation of modern production, transport and market infrastructure, efficient use of natural resources.