AboutMike Weikle Expertise Banking Lender Liability; Insurance Coverage; Consumer Rights; Bank Fraud; Criminal: White
Collar Crime; Fair Debt Collection Practices Act; Directors and Officers Liability
Experience Commissioned National Bank Examiner 7 years; President of Two Community Banks; Division Claims Specialist for American Bankers Association Sponsored Insurance Program; Carter Member of the Bank Fraud Team of the Office of the Comptroler of the Curency "OCC" (National Banjk Examiners); Attorney previously representing FDIC and Resolution Trust Corporation as well as consumers and commercial borrowers in claims against the banking industry; Former Data Processing Systems Examiner for the OCC; Expert Witness on variety of banking issues in both state and federal court.
Education/Credentials Certified Public Accountant;
JD -- West Virginia College of Law - Order of the Coif
Data Processing Training Old Dominion Bank and IBM
Question What are the different types of Exchange Rate Exposures? Explain the techniques used to manage these exposures.
Answer Exchange Rate Exposure in international transactions is really not my area of expertise. My understanding of the issue is very limited. As I understand it the exposure arises from changes in value of the currency denominated for use in payment of an obligation. For example, if the contract requires payment in dollars rather than rupees, the value to payee is less if the dollar loses value to rupee by the time payment is required. An easy hedge is for the current exchange rate to be stated in the contract with a provision for adjustment in favor of one or both parties should the exchange rate change prior to payment.
