Sber hedged its currency risk by buying Indian rupees. The bank was the first on the financial market to use options for this purpose, the company’s press service told RB.RU.
Author:
https://rb.ru/author/pardaeva/
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Russian entrepreneurs will now be able to fix the rupee exchange rate for the future. This will help them protect their companies from losses due to currency fluctuations, the report says.
A currency option is a contract to buy or sell a currency at a fixed exchange rate in the future. Only the seller is obligated to complete the transaction under fixed conditions and by a certain date.
The buyer has the right not to exercise the option, but to buy the currency at a more favorable market price, if one appears. However, the client is obliged to pay a premium to the seller regardless of whether he uses this service or not.
Author:
Karina Pardaeva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
