This paper aims to assess and quantify the exchange risk in an exporting firm. It begins by explaining
currency risk, followed by a qualitative analysis of the dollar exchange rate volatility against the Nuevo Sol.
This analysis is relevant, because each country has different exchange characteristics, which in the end
impacts on the currency flow and exchange rate, among others. It also explores other financial instruments
such as factoring with recourse and Non-Deliverable Forward as coverage alternatives. The range for the
analysis is from January 2010 to December 2012.
