- Set no benchmarks for exposures
- Have a moving target for realisations (maximising) or cost (reduction)
- Only see the hedged position and FORGET the unhedged exposure
- Clap when the market moves in favour of that only 10% hedge (what about unhedged?)
- Slap when market moves against that only 50% hedge
- Trust bankers more than your in-house costing-marketing-finance specialists
- At end of the year decide nothing to do next year w.r.t forex exposures
The good news is that , its not all that bad considering that majority of us are either walking in the dark without even a small pocket torch to guard very next footsteps OR quite a few of us are using a high beam at night and feel they can see a planet far into the next galaxy before any other astronomer has seen.
Foreign currency exposure management assumes importance in these volatile times and there has to be a scientific , objective and holistic approach to guard the bottomlines .
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