How should firms hedge currency risk?

Currency hedging, at its best, gives a company the time to adjust its business

Hedge funds

Illustration by Ajay Mohanty

Ajay Shah
How should corporations think about currency fluctuation? Currency exposure should be added up at the enterprise level. The key exposures generally come about because of import price parity of raw materials or products. Once the full exposure is known, the best attempt should be made, within the limitations of Indian capital controls, to lay off this risk. Currency risk management cannot allow a business to go on running poorly. What it can do is gain time, to change course.
Currency fluctuations are back on the radar screen of every CEO. What can firms do in order to manage this
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 23 2018 | 5:58 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to