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LIGNUM CO (DEC 12 ADAPTED)

This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.

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February 7, 2021 at 10:35 am #609550
Noah098
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“Maintaining a Zupeso account may enable Lignum Co to offset any natural hedges and only convert currency periodically to minimise transaction costs.”
Sir i don’t quite understand what this sentence is trying to suggest? especially natural hedges?
February 7, 2021 at 3:17 pm #609572
John Moffat
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for ‘natural hedges’ read ‘normal hedges’.
If they maintain an account in the foreign currency then they are not having to hedge each individual transaction.
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