This site uses cookies to store information on your computer. Some are essential to make our site work; others help us improve the user experience. By using the site, you consent to the placement of these cookies. Read our privacy policy to learn more.

Technical

The Treasurer's handbook - FX hedging in emerging markets

  The Association of Corporate Treasurers |   Free |   The Association of Corporate Treasurers |   Oct 2014 |   www.treasurers.org

Managing emerging market currency exposures presents a number of difficulties, and can be an expensive undertaking. In G10 currencies, risk management decisions are made in the context of lower hedging costs and deeper liquidity. In emerging markets, such decisions are less clear cut due to the, often significant, hedging costs which must be taken into account. This article describes how companies can develop an informed and systematic approach to managing their currency exposure.

Topics covered:
  • Management accounting: Technical: Corporate finance & treasury management: Treasury policies & treasury risk management, Expert

1 Comments/Reflections

Simon Clarke

Simon Clarke Mar 2018

Although you could argue that the article is a little out of date, it still illustrated the key principles of FX hedging, especially when it comes to emerging markets. 
The fundamental process I believe is still the same in 2018.