We consider an exporting firm facing FX risk. We show that FX options are not used for hedging, if there is no ex-post production flexibility. Hence, in the standard setting of having no ex-post optionality, hedging with forwards is the best choice.The value of FX options for hedging arises as...

Over the course of the first ten months of 2019, Russia's exports of fuel and energy resources in money terms dropped relative to the same period of the previous year by 8.1%, to $ 217.4bn (or 77% of the pre-crisis level registered in 2013). The value of other exports declined to $ 128.0bn...

In early 2017, international financial organizations adjusted their short- and medium-term forecasts. The World Bank report Global Economic Prospects[1], released in January 2017, and estimated global growth in 2016 at a post-crisis low of 2.3%. It was noted that growth in emerging markets and...

Generally, according to the 2016 results fuel exports dramatically fell, non-fuel exports decreased somewhat, while imports stopped falling. However, H2 2016 (as compared to the similar period of 2015) showed slightly different results. Exports virtually stopped falling, while imports even began...

In January-October 2018, exports of fuel and energy commodities increased by 36% as compared to the relevant period of the previous year (78% relative to the level of 2013). Other goods exports increased by 16%, having returned to the pre-crisis values (103% relative to the level of 2013). In...

Amid prolonged trade tensions, high political uncertainties and the COVID-19 pandemic, the global growth outlook has become much worse. In the past year, in global economic growth rates there was a dramatic slowdown both of international trade flows and global production activities. The growing...

In 2018, Russian exports of services increased by 12.4%. This dynamic growth is of a recovery nature. However, it may slow down after it has attained the pre-crisis volumes seen in 2013. In 2018, imports of services rose by 6.6%, having stopped growing in Q4 because of the dynamics of the...