Risk mitigation strategies in exports to markets with exchange restrictions: an integrative review
DOI:
https://doi.org/10.55892/jrg.v8i19.2477Keywords:
Exchange risk. Exports. Exchange restrictions. Risk management. International trade.Abstract
This article presents an integrative literature review on risk mitigation strategies in exports to markets with exchange restrictions. A total of 52 publications were analyzed, including peer-reviewed articles and institutional reports from international organizations, published between 2000 and 2025. The results were organized into three main axes: (i) financial strategies, such as derivatives, natural hedging, and currency invoicing; (ii) operational and contractual strategies, involving exchange rate adjustment clauses, shorter payment terms, and geographic diversification; and (iii) institutional instruments, such as letters of credit, export credit insurance, and support from export credit agencies. The analysis revealed that there is no single solution to risk mitigation in contexts of exchange restrictions, but rather a need for hybrid strategies that combine financial, contractual, and institutional mechanisms. It is concluded that the alignment between business practices and public policies is essential to reduce transaction costs and ensure international competitiveness, especially for small and medium-sized enterprises.
Downloads
References
BIS. Bank for International Settlements. Foreign exchange market intervention. Basel: BIS, 2005.
COOPER, H. Research synthesis and meta-analysis: A step-by-step approach. 4. ed. Thousand Oaks: Sage, 2010.
CROZET, M.; DEMIR, B.; JAVORCIK, B. International trade and letters of credit: Evidence from the COVID-19 crisis. Journal of International Economics, v. 138, p. 103694, 2022.
DORNEL, M.; SLIMANE, M.; MOHINDRA, K. The role of export credit insurance in global trade finance. OECD Working Papers, Paris, 2021.
FSB. Financial Stability Board. Report on market functioning under exchange restrictions. Basel: FSB, 2022.
GOPINATH, G. et al. Dominant currency paradigm. American Economic Review, v. 106, n. 2, p. 484-519, 2016.
GOPINATH, G.; ITO, T.; RIGOBON, R. Currency choice and exchange rate pass-through. Review of Economics and Statistics, v. 102, n. 1, p. 134-150, 2020.
IMF. International Monetary Fund. The liberalization and management of capital flows: An institutional view. Washington, D.C.: IMF, 2012.
IMF. International Monetary Fund. The institutional view on the liberalization and management of capital flows: Review and update. Washington, D.C.: IMF, 2022.
IMF. International Monetary Fund. Annual Report on Exchange Arrangements and Exchange Restrictions (AREAER). Washington, D.C.: IMF, 2023.
ITO, T.; KOIBUCHI, S.; SATO, K.; SHIMIZU, J. Exchange rate exposure and risk management: The case of Japanese exporting firms. Journal of the Japanese and International Economies, v. 38, p. 195-210, 2015.
LIU, C. Foreign currency borrowing and exporter dynamics in emerging markets. GCEPS Working Paper, Stony Brook University, 2024.
MATRAY, A. et al. Export credit agencies and international competitiveness: Evidence from OECD countries. World Economy, v. 47, n. 2, p. 355-378, 2024.
OCDE. Organização para a Cooperação e Desenvolvimento Econômico. Arrangement on officially supported export credits. Paris: OECD, 2024.
SNYDER, H. Literature review as a research methodology: An overview and guidelines. Journal of Business Research, v. 104, p. 333-339, 2019.
TORRACO, R. J. Writing integrative literature reviews: Guidelines and examples. Human Resource Development Review, v. 4, n. 3, p. 356-367, 2005.
U.S. DEPARTMENT OF COMMERCE. International trade finance: Tools and practices for exporters. Washington, D.C., 2024.
WEI, S. J.; ZHANG, Z. Collateral damage: Exchange controls and international trade. Journal of International Money and Finance, v. 26, n. 5, p. 841-863, 2007.
WHITTEMORE, R.; KNAFL, K. The integrative review: Updated methodology. Journal of Advanced Nursing, v. 52, n. 5, p. 546-553, 2005.
WTO. World Trade Organization. Trade finance and SMEs: Bridging the gap. Geneva: WTO, 2023.
