THE ROLE OF STRUCTURING DERIVATIVE TRANSACTIONS OF COMMERCIAL BANKS BASED ON ISDA (INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION) STANDARDS IN MANAGING CURRENCY RISKS
Abstract
This article analyzes the importance of structuring foreign exchange derivative transactions in commercial banks based on the standard documentation of ISDA. The study examines the advantages of ISDA-based agreements. The findings show that netting and collateral mechanisms applied under ISDA reduce counterparty risk and enhance hedging effectiveness. In the context of
Uzbekistan, the opportunities for developing derivative operations are assessed, and the necessity of implementing ISDA standards is substantiated.
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