Foreign Exchange Management:Before Even We Consider Hedging Strategy

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My earlier articles have discussed on the various means of internal hedging methodologies. However,even before we can embark on these strategies,we should a closer understanding of the following:

• The type of exposure are we exposed to;
• Size of the exposure;
• Stability of the currencies;
• Maturity period of the exposure;
• Ability to forecast exposure;
• Attitude of shareholders;
• Access to hedging instruments ( Forward,FX future,currency options,option-based derivative contracts,sway and others)

• Foreign Exchange Strategies:Operation/Management Policy And Procedures
• Foreign Exchange Management:Internal Hedging Method (Part 4 of 4)
• Foreign Exchange Management:Internal Hedging Methods (Part 1 of 4)
• Foreign Exchange Management:Forecasting and Quantifying FX Currency Risk
• FX Foreign Exchange Strategies:Internal Hedging Method (Part 3 of 4)
• Foreign Exchange Strategies:Managing FX/Foreign Exchange Transaction Exposure Risk
• Commonly Used Terms In Foreign Exchange