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Glossary entry

Spanish term or phrase:

Soporte Cambiario

English translation:

exchange rate support

Added to glossary by DB-9
Sep 8, 2019 17:55
4 yrs ago
Spanish term

Soporte Cambiario

Spanish to English Bus/Financial Law: Contract(s) Contract
Hola!

This term appears in a Business Contract as follows:

SISDDa: Soporte Cambiario causado durante cualquier mes "i" hasta en el mes “a" expresado en Pesos corrientes del fin del mes "a", calculado según la siguiente fórnula:

Muchas gracias!
Proposed translations (English)
2 +1 exchange rate support
4 protection from currency risk

Discussion

DB-9 (asker) Sep 11, 2019:
Thanks. Unfortunately, the formula does not appear on Proz exactly as I typed it !
Luis M. Sosa Sep 10, 2019:
hedging It looks like they are adjusting some variable for changes in the CPI (IPC, índice de precios al consumo, inflation in other words). This is a macro variable that is being used presumably for 'protection' from currency risk, which at the micro level, is called 'hedging'.
DB-9 (asker) Sep 10, 2019:
Hi

Here is the formula:


a
SISDDa = ∑SISDDi x IPCa
i=1 IPCi


Luis M. Sosa Sep 10, 2019:
Formula Asker, can we see the formula?
DB-9 (asker) Sep 10, 2019:
Thanks for all your comments. Before this term are abbreviations different parts of a formula with their explanations. Following the paragraph above is the actual formula.
Francois Boye Sep 10, 2019:
@ Sosa

We must see the formula alluded to in Asker's text, but unspecified.
Luis M. Sosa Sep 9, 2019:
hedging Yes, Franciois, your statement is correct in a macro context, but the source doc seems to be a business contract only (micro context). I see hedging in this context would fit much better than protection. It is true, Central Banks are not expected to 'hedge' against currency risk, it is said that they normally 'support' their currencies. However, moving away from central banking, I know examples of State Owned Entreprises that hedge against, for example, declines in oil prices, like PEMEX in México has done with Goldman Sachs.
Francois Boye Sep 9, 2019:
If the IMF provides finances to Argentina to support the peso, it protects Argentina from currency risk by providing hard currency, but it does not hedge the peso (in the financial sense of the word).
Luis M. Sosa Sep 9, 2019:
hedging Protection from currency risk = currency risk/exchange rate hedging
Francois Boye Sep 9, 2019:
@Phil

exchange rate support (soporte cambiario) = preventing the exchange rate from being erratic = protection from currency risk. Why? Because currency risk = erratic change of the exchange rate.
philgoddard Sep 9, 2019:
Context What does it say before and after this? What is the contract for? And do you know what SISDD stands for? Could it be English?

Proposed translations

+1
20 hrs
Selected

exchange rate support

PDF]
national bank of belgium - Archive of European Integration

aei.pitt.edu › ...
by I Maes - ‎2003 - ‎Cited by 25 - ‎Related articles
Chart 1 - Nominal exchange rate of the Belgian franc and the Italian lira against ..... for greater exchange rate stability and exchange rate support mechanisms.
The New International Money Game
- Page 79 - Google Books Result
https://books.google.com.ar › books
R. Aliber - 2001 - ‎Business & Economics
Even with wider spreads between exchange rate support limits, exchange ... since a formula-approach might circumvent the reluctance of the authorities to .
Note from asker:
Thanks Patinba!
Peer comment(s):
agree Adrian MM.
4 hrs
Thank you, Adrian!
Something went wrong...
4 KudoZ points awarded for this answer. Comment: "Thanks to Adrian and everyone else for your help!"
43 mins

protection from currency risk

Peer comment(s):
neutral philgoddard : This would be currency hedging, but you haven't given any Spanish references so I don't know whether it's correct.
15 hrs
Something went wrong...
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