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Q » Explain foreign currency risk management.
06 Dec, 2025
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A » Foreign currency risk management involves strategies to minimize the impact of exchange rate fluctuations on international transactions. Key methods include using hedging instruments like forward contracts, options, and swaps to lock in exchange rates, diversifying currency exposure, and employing natural hedging by matching currency inflows and outflows. Effective management helps protect against potential losses and ensures financial stability in global operations.
06 Dec, 2025
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