Mathematical Models for a firms Optimal Holding of a Foreign Currency

摘要：

Domestic firms had been allowed to hold more hard currencies for use, mainly in importing goods, to help spur trade and relieve upward pressure on the RMB. The policy will help firms to strengthen their international competitiveness.Holding foreign currencies, a firm can facilitate its business activity, but it encounters exchange risks.Chinese firms need to economize on the holdings of foreign currency balances. The main purpose of this study is to research the foreign currency management behavior of international trade firms.We build models to help firms determine the optimal holding of a foreign currency by taking into account holding costs, transferring costs, exchange risks, interest rates on foreign exchange deposits and its interest tax rates.

关键词： Optimal Holding foreign currency mathematical models

作者: Weiya Zhao Xiutian Zheng

作者单位: School of Statistics and Mathematics Zhejiang Gongshang University Hangzhou, Zhejiang Province, China

会议类型: 国际会议

会议名称: 2007 Conference on Systems Science, Management Science and System Dynamics(第二届系统科学、管理科学与系统动力学国际会议)

会议地点: 上海

会议语种:英文

页码: 3061-3068

在线出版日期: 2007-10-19（万方平台首次上网日期，不代表论文的发表时间）