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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)

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