Matching currency cash flows

Matching can offset an operating foreign-currency receipt against a payment without converting both through the home currency. It may involve coordinating commercial timing or holding a currency balance for a later obligation, subject to liquidity and cost. It differs from netting reciprocal legal claims, although both can reduce transfers. Only the genuinely offset amount and timing are protected; remaining differences still create exposure. Using foreign-currency borrowing or sourcing to offset business cash flows is another form of natural hedging, but can introduce other risks.