• Loso Judijanto IPOSS Jakarta, Indonesia
  • Nurussama Institut Teknologi dan Bisnis Bina Sriwijaya Palembang
  • Rina Apriliani Sekolah Tinggi Ilmu Ekonomi Bisnis Manajemen Indonesia

Kata Kunci:

Strategy, Management, Financial Risk, Foreign Exchange Rate Fluctuation.


Changes in foreign exchange (forex) rates have a significant impact on the finances of companies that operate internationally. Exchange rate fluctuations can affect profitability, operating costs, and the value of overseas assets, placing pressure on a company's financial stability. This research investigates various financial risk management strategies that can be used by companies to protect themselves from this volatility. The research method used was a literature review. The research found that derivatives, when used appropriately, can significantly reduce the risks associated with exchange rate fluctuations. However, this strategy requires a deep understanding of financial instruments and the forex market, as well as expertise in financial risk management. In addition, the study identified that currency diversification and currency matching are important approaches in risk mitigation that not only protect companies from forex market uncertainties but also help in maintaining liquidity. Another critical factor is the cooperative relationship with international banks that can provide valuable insights and customized solutions for forex risk management.


Aabo, T. (2023). The Importance of Corporate Foreign Debt in Managing Exchange Rate Exposure in Non-Financial Companies. SSRN Electronic Journal, Query date: 2024-05-11 14:54:01.

Abdul, M., Ingabire, A., Lam, C., Bennett, B., & ... (2024). Indigenous food sovereignty assessment—A systematic literature review. Nutrition & …, Query date: 2024-05-10 07:14:07.

Alhajri, A., & Aloud, M. (2024). Female digital entrepreneurship: A structured literature review. … Journal of Entrepreneurial Behavior &Research, Query date: 2024-05-10 07:14:07.

Ameziane, K., & Benyacoub, B. (2022). Exchange Rate Volatility Effect on Economic Growth under Different Exchange Rate Regimes: New Evidence from Emerging Countries Using Panel CS-ARDL Model. Journal of Risk and Financial Management, 15(11), 499–499.

Baah, M. O. (2024). EXCHANGE RATE FLUCTUATIONS AND DOMESTIC INVESTMENT: EVIDENCE FROM GHANA. European Journal of Economic and Financial Research, 8(1).

Drebee, H. A., & Razak, N. A. A. (2022). Impact of Oil Price Fluctuations on Economic Growth, Financial Development, and Exchange Rate in Iraq: Econometric Approach. Industrial Engineering & Management Systems, 21(1), 110–118.

Durmaz, N., & Kagochi, J. (2022). Asymmetric Exchange Rate Pass-Through in Turkish Imports of Cocoa Beans. Journal of Risk and Financial Management, 15(4), 184–184.

EFUNTADE, O. O., & EFUNTADE, A. O. (2023). Testing the Cointegrating Relationship between Foreign Exchange Rate Volatility and Government Health Expenditure. Journal of Accounting and Financial Management, 9(2), 45–61.

FASINA, O. T. (2022). EXCHANGE RATE FLUCTUATIONS, FOREIGN DIRECT INVESTMENT AND FINANCIAL DEVELOPMENT IN NIGERIA. Journal of Economics and Trade, Query date: 2024-05-11 14:54:01, 1–10.

Fathi, M., Grobys, K., & Kolari, J. W. (2024). On the Realized Risk of Foreign Exchange Rates: A Fractal Perspective. Journal of Risk and Financial Management, 17(2), 79–79.

Gong, L. (2022). Structural transformation and RMB real exchange rate fluctuations. Query date: 2024-05-11 14:54:01.

Grobys, K. (2023). Correlation versus co-fractality: Evidence from foreign-exchange-rate variances. International Review of Financial Analysis, 86(Query date: 2024-05-11 14:54:01), 102531–102531.

He, Q., Wang, W., & Yu, J. (2023). Exchange rate co-movements and corporate foreign exchange exposures: A study on RMB. International Review of Financial Analysis, 90(Query date: 2024-05-11 14:54:01), 102831–102831.

Hecht, A., & Lampenius, N. (2023). How Do Firms Manage Their Foreign Exchange Exposure? Journal of Risk and Financial Management, 16(8), 359–359.

Lajevardi, H., & Chowdhury, M. (2024). How Does the Exchange Rate and Its Volatility Influence FDI to Canada? A Disaggregated Analysis. Journal of Risk and Financial Management, 17(2), 88–88.

Le, T. T. M., Martin, F., & Nguyen, D. K. (2023). Tail Risk Transmission in the Foreign Exchange Market: A Quantile LASSO Regression Approach. Contemporary Financial Management, Query date: 2024-05-11 14:54:01, 607–623.

Magoane, R. M., Meyer, D. F., & Muzindutsi, P.-F. (2023). The Asymmetric Effect of Political Risk and Exchange Rate Fluctuations on Foreign Direct Investment Inflows in South Africa. The Journal of Developing Areas, 57(2), 253–268.

Maiti, M., & Kayal, P. (2022). Asymmetric Information Flow between Exchange Rate, Oil, and Gold: New Evidence from Transfer Entropy Approach. Journal of Risk and Financial Management, 16(1), 2–2.

Mohanty, D., Mohapatra, A. K., Tripathy, S., & Matta, R. (2023). Nexus between foreign exchange rate and stock market: Evidence from India. Investment Management and Financial Innovations, 20(3), 79–90.

Nan, L. (2023). The Impact of RMB Exchange Rate Fluctuations on China’s Outward Foreign Direct Investment: An Empirical Analysis. Frontiers in Business, Economics and Management, 11(2), 322–326.

Nasry, U., Nuha, U., & Indinabila, Y. (2024). Literature Review And Practical Guide: Bibliographic Research Method In The Formation Of Conceptual Framework. BIMSALABIM: Jurnal Ilmiah …, Query date: 2024-05-10 07:14:07.

Ndlovu, T., & Chikobvu, D. (2022). Comparing riskiness of exchange rate volatility using the Value at Risk and Expected Shortfall methods. Investment Management and Financial Innovations, 19(2), 360–371.

Obi, P., & Ogbeide, G.-C. (2022). The Mediating Effects of Implied Volatility and Exchange Rate on the U.S. Tourism-Growth Nexus. Journal of Risk and Financial Management, 15(3), 112–112.

Pan, G. (2023). The Impact of Exchange Rate Fluctuation on Toyota Financial Performance and Its Hedging Strategy. BCP Business & Management, 43(Query date: 2024-05-11 14:54:01), 270–276.

Risstad, M., Thodesen, A., Thune, K. A., & Westgaard, S. (2023). On the Exchange Rate Dynamics of the Norwegian Krone. Journal of Risk and Financial Management, 16(7), 308–308.

Sahin, G., & Sahin, A. (2023). An Empirical Examination of Asymmetry on Exchange Rate Spread Using the Quantile Autoregressive Distributed Lag (QARDL) Model. Journal of Risk and Financial Management, 16(1), 38–38.

Salik, A. M., & Aras, O. N. (2022). The Effects of Trade Openness, Foreign Direct Investment and Exchange Rate Fluctuations on Non-oil Gross Domestic Product Growth. Journal of Management, Economics, and Industrial Organization, Query date: 2024-05-11 14:54:01, 98–117.

Sun, S., & Zhong, R. (2022). Analysis of RMB Exchange Rate Fluctuations under the Covid-19—Taking the RMB-USD Exchange Rate as an Example. OA Journal of Economy and Management, 1(2), 118–126.

Swain, S., Jebarajakirthy, C., Sharma, B., & ... (2024). Place branding: A systematic literature review and future research agenda. … of Travel Research, Query date: 2024-05-10 07:14:07.

Wang, J. (2023). Exchange Rate Risk and Foreign Discount in US Dollar Bonds. SSRN Electronic Journal, Query date: 2024-05-11 14:54:01.

Wei, Z. (2023). The Impact of Renminbi Exchange Rate and Exchange Rate Volatility on China’s Outward Foreign Direct Investment. Frontiers in Business, Economics and Management, 11(2), 42–48.

Wicaksono, B. D., & Syarif, A. D. (2022). The Influence of Inflation, Exchange Rate and Foreign Exchange Reserves on Indonesian Government Bond Yield with the Bank Indonesia Rate as Moderation. JOURNAL OF ECONOMICS, FINANCE AND MANAGEMENT STUDIES, 5(12).

Xu, J. (2023). Exchange rate risk management of foreign trade enterprises. BCP Business & Management, 38(Query date: 2024-05-11 14:54:01), 1292–1298.

Zeng, Z. (2024). The Role of Financial Instruments in Corporate Exchange Rate Risk Management. Advances in Economics, Management and Political Sciences, 80(1), 306–312.

Zhong, M. (2023). The Case Study Used to Analyze How to Use Financial Derivative to Hedge Foreign Exchange Risk. Highlights in Business, Economics and Management, 15(Query date: 2024-05-11 14:54:01), 281–285.

Zorgati, M. B. S. (2023). Risk Measure between Exchange Rate and Oil Price during Crises: Evidence from Oil-Importing and Oil-Exporting Countries. Journal of Risk and Financial Management, 16(4), 250–250.