EXCHANGE RATE RISK AND INTERNATIONAL TRADE AT EXIM BANK

Abstract

The Export-Import Bank of India is the primary focus of this research, which investigates the impact of currency rate risk on international trade. Importers and exporters' pricing decisions, contract values, and trade competitiveness are significantly affected by currency exchange rate uncertainty, particularly in developing nations. The research evaluates the effect of exchange rate risk on settlement results and trade volumes by analyzing the role of EXIM Bank in managing this risk through trade finance, credit guarantees, and structured hedging assistance. By increasing the accessibility of risk management tools and offering institutional support for cross-border transactions, EXIM Bank fosters exporter confidence and trade stability. The research underscores the necessity of development-oriented financial institutions, such as EXIM Bank, in the effective management of exchange rate risk to enhance the performance of a country's external sector and foster long-term growth in international commerce.