Author 1 :- Shubham Goel ( Research Scholar )
Author 2 :- Dr. Sarita Pathak ( Assistant Professor )
Amidst the chaos of war and the pervasive impact of disease, currency exchange rates have entered a period of heightened volatility, presenting formidable challenges to multinational enterprises. The specter of currency depreciation looms large, necessitating a proactive and adaptive financial management strategy to mitigate its adverse impacts. To shield against these threats, companies are compelled to embrace a multifaceted approach, employing a suite of tactics such as engaging in hedging through financial instruments, recalibrating pricing models to anticipate market shifts, and streamlining global supply chains to reduce vulnerability to currency fluctuations. This paper endeavors to dissect these diverse strategies, with the objective of pinpointing the most efficacious approach for multinational companies to steer through the labyrinth of fluctuating exchange rates. The overarching aim is to fortify financial stability and bolster operational robustness, enabling these entities to not only withstand but also thrive amidst the ever-shifting landscape of global economic dynamics. By distilling insights from a comprehensive analysis of available methods, this paper aspires to arm multinational companies with the strategic acumen required to navigate the intricacies of currency volatility, securing their financial well-being and operational integrity in an era rife with uncertainty.
