Strategy Effective Face Fluctuation Currency Exchange Rate Money Islamic Economic Perspective

Abstract

The exchange rate, or currency value, is crucial because it can serve as an indicator for various aspects of a country's economy. Currently, the development of the economic system is moving towards a more extensive and open system between countries. The exchange rate plays a vital role in trade within a country, and stability is crucial for market participants worldwide. The stability of the exchange rate can be seen from two perspectives: first, the stability or instability of domestic prices for goods and services. Data collection techniques include observation, interviews, and documentation. To obtain these answers, researchers use both primary and secondary data. Both data sets are analyzed using qualitative analysis methods. Companies engaging in international transactions must have effective strategies to face currency fluctuations. These strategies involve hedging, diversification, risk management, using foreign currencies, credit management, using derivatives, and managing cash flow. In this way, companies can reduce financial risks arising from currency fluctuations and enhance financial security. The discussion in this study aims to anticipate and mitigate the risks associated with currency fluctuations.