Hedging against emerging market currency risk can be expensive. Is it time for treasurers in emerging markets to allow natural hedging to do the work for them?
The dollar-yuan exchange rate - now at its lowest in more than a decade - highlights the need for businesses with exposure to the Chinese currency to either fortify their positions ... or just take it on the chin
CT takes a look at Cathay Pacific’s 2017 annual report to see how its treasury is dealing with its fuel hedging strategy and how new accounting practices affect the airline.
May 24, 2018
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Most airlines hedge fuel expenses. This time, Cathay Pacific failed to predict oil would stay cheap. It is not alone in making this call ... and it wasn't necessarily wrong.
Thai Airways switched from operating in US dollars backed with FX hedging to a natural hedge strategy, but the plunging baht has called the decision into question.