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The Story Of Chf Or How To Lose Your Sleep And Money By Ignoring The Foreign Currency Risk

Author

Listed:
  • Laurentiu-Mihai Treapat

    (National University of Political Studies and Public Administration, Bucharest, Romania)

  • Anda Gheorghiu

    (National University of Political Studies and Public Administration, Bucharest, Romania)

Abstract

This paper represents an empiric research how The Central Bank of Switzerland gave up on sustaining the minimum exchange rate for CHF, as a result of a dramatic movement in the history of the FX market. The decision has equally affected companies or families that got loans (usually in another currency than their incomes). Due to the troubles that reached social dimensions in some ECE countries, we decided that it is worth making an academic X-ray upon the way the specialists succeeded in transmitting their experiences to the others. The lessons from history should be learnt, it is the scientists’ duty to use their ability to get into the essence of the phenomena and to reveal the conclusions to the ones around.

Suggested Citation

  • Laurentiu-Mihai Treapat & Anda Gheorghiu, 2015. "The Story Of Chf Or How To Lose Your Sleep And Money By Ignoring The Foreign Currency Risk," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 298-307.
    • Handle: RePEc:ddj:fserec:y:2015:p:298-307
    as

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    References listed on IDEAS

    as
    1. Jongmoo Jay Choi & Anita Mehra Prasad, 1995. "Exchange Risk Sensitivity and Its Determinants: A Firm and Industry Analysis of U.S. Multinationals," Financial Management, Financial Management Association, vol. 24(3), Fall.
    2. Giancarlo Gandolfo, 2016. "International Finance and Open-Economy Macroeconomics," Springer Texts in Business and Economics, Springer, edition 2, number 978-3-662-49862-0, June.
    Full references (including those not matched with items on IDEAS)

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