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Was this natural hedging or no hedging?

This is taken from Notes to the Consolidated Financial Statements of a public company:

"Currently the Company does not implement any formal hedging policy for foreign exchange exposure. The Company plans for the proper buying of foreign currencies for the import purchase intensive foreign currency monitoring, and proper timing in purchasing to reduce the foreign currency risk."

Was the company implementing natural hedging or no hedging?

1 Answer

  • Anonymous
    2 months ago
    Favorite Answer

    I think the company doesn't implement hedging yet. The company intends to hedge when it matters in the future. There's also no clue that the company do natural hedging (utilize foreign sales as a hedging).

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