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Q » Explain currency risk management.
06 Dec, 2025
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A » Currency risk management involves strategies to mitigate potential losses due to fluctuations in exchange rates. Businesses and investors may use hedging techniques, such as forward contracts, options, and swaps, to secure exchange rates and stabilize cash flows. Effective management requires understanding market dynamics, assessing exposure levels, and implementing policies that align with financial objectives. This helps protect international transactions and investments from adverse currency movements.
06 Dec, 2025
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