What is Currency Hedging? Currency hedging is a strategy used to mitigate, reduce, and neutralise the impact of currency rate fluctuations.
Examples of Currency Hedging - Individuals locking exchange rates for the purchase of property abroad. - Investors buying stocks, bonds, etc. in a foreign currency might hedge to protect their investment. - Exporters can hedge to protect their profits earned in a foreign currency from weakening in their home currency.
Currency Hedging for Students Currency Hedging is important for students. This essential strategy helps students secure their foreign education budget.
Currency Hedging Process The process of Currency Hedging involved using Forward Contracts from banks. It is like a deal with bank to lock in today's exchange rate for future money transfers.