Hedging Exchange Rate | Currency risk using Netting
Hedging Exchange Rate | Currency risk using Netting If you owe your Japanese supplier ¥1m, and another Japanese company owes your Japanese subsidiary ¥1.1m, then by netting off group currency flows your net exposure is only for ¥0.1m. This will really only work effectively when there are many sales and purchases in the foreign currency. It would not be feasible
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