International Journal of Scientific Research and Engineering Development

The aim of this thesis is to examine the currency risks faced by companies and to analyse the riskmanagement methods and instruments used to mitigate these exposures. Whether a company operates nationally or internationally, currency risk management becomes an essential component of day-to-day business operations. Currency fluctuations can create both opportunities and threats, and organisations adopt a variety of strategies to deal with these risks. As many companies expand their operations across borders to tap into global markets, they are increasingly exposed to risks that were previously unfamiliar particularly currency-related risks. Exchange rate volatility can significantly influence an MNC’s monetary performance, competitive positioning, and overall financial sustainability. The findings of this thesis highlight the importance of adopting a proactive and comprehensive approach to currency risk management, enabling MNCs to navigate the complexities of the global economy and maintain a competitive advantage.