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We have earlier discussed the internal hedging method of Netting method.
Let’s move to the final part of the article on the internal hedging method:
Inter-Company Foreign Exchange Contracts
Forward contracts raised between two within group companies where one company agrees to buy or sell currency to […]

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In the previous article, we have discussed about the matching internal hedging method. 
 This article is on the next method which is the:
 Netting Method
This method is similar to matching. The only difference is that matching includes the cash-flows of third parties whilst netting involves strictly the cash-flows […]

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The previous article dealt with the Leading and Lagging Method of internal hedging.
Let’s move on to the next method which is the:
Matching Method
Here the intention is to offset all the company’s foreign currency payables with the appropriate foreign currency receivables. The net amount is […]

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Let’s have an illustration to demonstrate how we can manage a transaction exposure risk:
Say if your company has just bought some chemical products from a Japanese supplier. This deal is denominated in Japanese Yen. You have 90 days to make payment and payment could be […]

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It’s important to constantly update yourself with the economic information of the country where you have foreign exchange exposure. At times, the economic information might explain to you the reasons of the strength, weakness or volatility of the currencies.
Economic information is divided into two categories:
 

Leading […]