Challenges facing utility companies on management of foreign exchange transactions exposure

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Unversity of Dar es Salaam
The appropriate level of firm business foreign exchange risks associated with foreign exchange vitality is the key variable in any utility sector involved in transactions denominated in foreign currencies with foreign exchange vitality effects, there is a used for a better understanding of foreign exchange risks management techniques to reduce risks.teh study aimed at finding out the relationship between the firm expected profits and the exchange rate vitality effects and assesses foreign exchange risk awareness and general practices within utility firms. The research was conducted at TANESCO head office where the researcher reviewed the energy purchase records imported from Uganda, Zambia and Independent power producers within the country. The case study and survey approaches were used to collect the quantitative and qualitative data for the analysis. The results show that there was lack of strong relationship between the expected level of profitability and exchange rate volatility and it has expected other factors have direct influence and have signifince impact to the firm expected profit or loss. Also it is evident that the firm has no sound policy on foreign exchange transaction risks management activities as there is a perception that the capacity within the county to manage foreign currency risk is either weak or mostly non-existent or where it is somewhat in existence is a need to strengthen that capacity.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG203.T34K65)
Foreign exchange, Utility companies, Risk management, Tanzania Electric supply company Limited (TANESCO)
Komba, O. B. (2008) Challenges facing utility companies on management of foreign exchange transactions exposure, Master dissertation, University of Dar es Salaam, Dar es Salaam