Managing Commodity Price Risk in Developing CountriesWorld Bank, 1993 - 466 pages Primary commodities represent more than one-half of the export earnings of many developing countries. The large fluctuations that can occur in the prices of such commodities are therefore a main economic difficulty for these countries. New financial techniques can lower the risk caused by these price changes over longer periods and allow financial obligations to be linked to commodity prices. But few developing countries have used these techniques. This book shows policymakers in developing countries how to use the full range of new and established financial techniques. Through case studies, it provides detailed information about the techniques, analyzes the institutional constraints on them, and illustrates the kinds of technical assistance needed to make good use of them. It also describes the instruments, the markets, and the current regulatory framework. For the past several years, the World Bank has assisted developing countries in managing commodity price risk. The book draws extensively on the lessons learned from this assistance to demonstrate that developing countries can benefit significantly from using financial techniques to manage their risk. |
Contents
Domestic Price Stabilization Schemes for Developing | 30 |
The Effects of Option Hedging on the Costs of Domestic Price | 68 |
Modern Financial | 93 |
Copyright | |
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Other editions - View all
Managing Commodity Price Risk in Developing Countries Stijn Claessens,Ronald C. Duncan,World Bank No preview available - 1993 |
Common terms and phrases
adjustment agricultural asset basis risk benefits call options Caño Limón cash surplus CFTC chapter coefficient coffee prices commodity price risk commodity risk commodity swap commodity-linked bonds consumers copper Costa Rica costs crop currency deutsche marks developing countries domestic prices economic ECOPETROL effect equation example exchange rate exercise price export earnings exposure financial instruments fixed fluctuations forward contracts futures and options futures contracts futures market futures prices government revenues grain hedge ratio hybrid income increase initial advance interest rate international price liability loan margin marketing boards maturity ment mill minimum price moving average MRSF oil prices optimal Papua New Guinea payments percent period planning horizon portfolio precio rieles premium price band scheme price changes price movements primary commodities purchase put options RECOPE reduce result rice risk management risk reduction sector sell spot price standard deviation subsidies Table tariff tion transactions U.S. dollars variability World Bank world price