- 3 Marks
AFM – Nov 2017 – L3 – Q1d – Hedging against financial risk: Non-derivative techniques
Recommendations on how to minimize the loss on foreign currency transactions for a multinational company involved in export trade.
Question
In the last couple of years, the Cedi has depreciated substantially against the US Dollar. It is also noticed that the Cedi has had volatile movements against the Pounds Sterling since the beginning of year 2017.
Required: As a Finance Director of your organization, a multinational company which is involved in the export trade, recommend THREE actions to be taken to minimize the loss on foreign currency transactions.
Find Related Questions by Tags, levels, etc.
Report an error