QUESTIONNAIRE FOR STAFF AND CLIENTS
Dear respondent,
I am conducting a research on “Effects of Foreign Exchange on the Performance of Financial Institutions”. Therefore I kindly request you to spare a few minutes of your busy schedules to fill this questionnaire to enable me accomplish this task. Your honest and sincere responses are highly appreciated for academic purposes and shall be treated with utmost confidentiality. I thank you very much for your cooperation.
SECTION A: BACKGROUND INFORMATION
(Please tick in the appropriate Box)
- Sex: Male Female
- Age: 20 – 30 years 31 – 40 years 41 – 50 years
51 – 60 years 60 and above
- Level of Education:
Primary Secondary Diploma Degree
Post –graduate Others (specify) …………………………
SECTION B: FOREIGN EXCHANGE PRACTICES USED
- Does your organization have a policy for managing foreign exchange risk?
Yes No
- What does your organization use as the financial means to manage foreign exchange fluctuation?
(i) Forward contracts
(ii) Currency swaps
(iii) Currency options
(iv) Currency futures
(v) Choice of currency in which company debt is denominated
Others specify………………………………………………………………………………….
- How often has your organization used the following operational means to manage foreign exchange fluctuation?
Choice of invoicing currency
Matching cash inflows and outflows
Netting different currencies‘ exposures
Leading and lagging
Matching assets and liabilities
Other [please specify] …………………………………………………………………………
SECTION C: CHALLENGES AND SOLUTIONS OF FOREGIN EXCHANGE
- What are some of the challenges of foreign exchange in financial institutions?
A failure to appreciate the market complexity
Lack of trading strategy
Threat of human emotion
Complexity of technology used
Others specify……………………………………
SECTION D: HOW FOREIGN EXCHANGE AFFECT FINANCIAL PROFITABILITY.
- In this section, tick the best option by using strongly Agree (SA), agree (A), Not Sure (NS), Disagree (D).
| STATEMENT | Responses | ||||
| SA | A | NS | D | SD | |
| The use of foreign exchange management strategies results in reduced foreign exchange exposure hence minimal losses | |||||
| The firm often carries out foreign exchange exposure projections in different currencies | |||||
| The firm sets extensive budgeting systems to handle currency risk projections | |||||
| We have an up-to-date system that helps to handle currency risk projections | |||||
| There are revenue projections incorporating foreign exchange rate movements in this firm. | |||||
| We minimize exposure through early payments of foreign currencies before they are due. | |||||
| If possible, we do delay foreign currency payments to a later date (lagging) | |||||
| We also match costs with revenues denominated in similar currencies to reduce the impact (matching strategy) | |||||
| At times we also forego foreign currency denominated financing if its anticipated that exchange rates was volatile later | |||||
THANK YOU FOR YOUR TIME
