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Exposure netting

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Exposure netting
Offsetting exposures in one currency with exposures in the same or another currency, when exchange rates are expected to move in such a way that losses or gains on the first exposed position should be offset by gains or losses on the second currency exposure.


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These techniques include forward market hedge, futures hedge, money market hedge, currency options, exposure netting and the use of official export/financing agencies.
 
 
 
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