Active currency management by corporate clients

Currency has been defined by Shoup (1998) in The International Guide of Foreign Currency Management, as a medium of exchange for the supply of goods recognizable by the state and has the legal support of the States Authority. In essence the value and the amount of currency available to the population is regulated by the ability of the government to finance its debt and other financial instruments. (Goldstein, 1992) Currency and its management determine the economical footing of the State and as such must be strictly controlled by the Government. Strength and value of a States currency is affected by several contributing factors. These factors may be intentionally implemented or developed as a result of external impact. This was seen in South Africa in the 1980s when the price of Gold had