The Impact of the 2007-2009 Financial Crisis on the Relationship between Central Bank Rates and the Corresponding Interbank Interest Rates in 2002-2014

The role of central banks throughout the global financial system has become even more important during and after the events of the financial crisis. In order to stabilize the market conditions and provide solid ground for future development, the central banks use discount rate as their primary monetary policy tool in many developed and emerging economies. The purpose of this thesis is to examine how the relationship between central bank rates and corresponding interbank rates has developed before, during and after the crisis period of 2007-2009 in five developed countries and five emerging market countries. The results indicate that during the before-crisis period the interest rate markets reacted diversely but the joint recovery attempts of global economies seem to have stabilized the reactions during and especially after the crisis. The crisis also seems to have highlighted the characteristics of each country’s survival strategy as the role of other policy instruments arose.

Competitiveness Survey of a Biofuel Power Plant

Työn tarkoituksena on tarkastella Euroopan siirtymätalousalueelta kotimaisen biopoltto-ainevoimalaitoksen kilpailukykyä potentiaalisimmiksi markkinakohteiksi arvioitujen nykyisten Eu-valtioiden osalta. Työ tehdään osana kokoluokaltaan 3,5 MWth/1,0 MWe pienvoimalaitoksen tuotekehityshanketta, joka on käynnistynyt Varkaudessa tämän vuoden maaliskuussa. Potentiaalisimpien siirtymätalousmaiden valintakriteereinä on käytetty aiempia tutkimuksia ja raportteja. Huomio keskitetään kiinteän biopolttoaineen resursseihin ja biopolttoaineisiin pohjautuvalle energiantuotannolle asetettuihin tavoitteisiin. Edellä mainittujen kriteerien pohjalta tarkasteltaviksi valittujen valtioiden osalta tehtiin tarkemmat kilpailukykyanalyysit, otettiin yhteyttä markkina-alueeltaalan ammattilaisiin ja kartoitettiin potentiaalisimmat markkinakohteet. Tavoitteena on arvioida varteenotettavin kilpailija kiinteisiin biopolttoaineisiin pohjautuvalle sähkön ja lämmön yhteistuotannolle, jonka perusteella laaditaan mallivoimalaitoksen kilpailukykyisen hinnan määrittämiseksi tiettyyn takaisinmaksuaikaan ja korkotekijään perustuen. Lopulta tehdään maakohtaisesti yhteenveto merkittävimmistä markkinapotentiaaliin vaikuttavista kilpailutekijöistä, arvioidaan potentiaalisin kohdemaa sekä esitetään mahdollinen investoinnin rahoitusvaihtoehto ja keinoja markkinoida tuotetta potentiaalisille asiakkaille.

Foreign exchange exposure management in a fuel procurement company operating in the commodity markets

Fluctuating commodity prices, foreign exchange rates and interest rates are causing changes in cash flows, market value and the companies’ profit. Most of the commodities are quoted in US dollar. Companies with non-dollar accounting face a double risk in the form of the commodity price risk and foreign exchange risk. The objective of this Master’s thesis is to find out how companies under commodity should manage foreign exchange exposure. The theoretical literature is based on foreign exchange risk, commodity risk and foreign exchange exposure management. The empirical research is done by using constructive modelling of a case company in the oil industry. The exposure is model with foreign exchange net cash flow and net working capital. First, the factors affecting foreign exchange exposure in case company are analyzed, then a model of foreign exchange exposure is created. Finally, the models are compared and the most suitable method is defined. According to the literature, foreign exchange exposure is the foreign exchange net cash flow. However, the results of the study show that foreign exchange risk can be managed also with net working capital. When the purchases, sales and storage are under foreign exchange risk, the best way to manage foreign exchange exposure is with combined net cash flow and net working capital method. The foreign exchange risk policy of the company defines the appropriate way to manage foreign exchange risk.