Impact of exchange rate fluctuations on foreign currency debt: the case of GMODELO, 2002-2011

Abstract

It is believed that domestic firms impact their financial structure-profits or losses, by fluctuations in the exchange rate, so this research validate the impact of such fluctuations by applying five financial ratios for the company Grupo Modelo. Applying the 5 financial reasons it is concluded that only companies with little debt in dollars and export earnings are greater than the debts acquired, have the ability to take advantage of depreciation, and if the exchange rate appreciation, as is the case GMODELO.