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Risk Management

FX Risk Management in China

China revalued the yuan in July, replacing a decade-long peg against the US dollar with a managed float regime. Financial market reactions made it plain that the future of the yuan would have broad implications for multinational companies (MNCs). Treasurers of MNCs are looking at their company’s yuan exposure and evaluating how they manage it. Previously, most corporations concluded that hedging against the yuan was simply too costly.

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