Modern Instruments of Currency Risk Management of International Project Finance

In recent decades, project financing has been widely used around the world. This trend is largely due to the effectiveness of this tool in terms of attracting foreign investment. This method of financing has become widespread in foreign and domestic practice. However, a significant disadvantage of this tool is high exposure to currency risks. In order to study this problem, the paper gives a definition of project finance and information about main trends of its development. The classification of risks, detailed analysis of risk management strategies based on foreign experience and methods of currency risk estimation are also presented. Currency risk hedging mechanisms of project financing are also shown in the paper. In conclusion, the problems and prospects of project finance development in Russian Federation are considered. Examples of successful implementation of large investment projects are given.