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Do you think US companies should be allowed to use foreign currency derivatives to hedge against...

Do you think US companies should be allowed to use foreign currency derivatives to hedge against the effect of unfavorable changes in the value of foreign currencies?  

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Answer #1

Yes

By hedging one can reduce the loss.

In case of companies foreign currency derivatives should be used to reduce the loss from foreign currency transactions.

By hedging in foreign currency derivatives the company can gain the profits

Derivatives can help in hedging the companies portfolio against any risks. They can also be used for speculation and arbitrage.hedging can be used to locking the profit. Hedging gives company from changes in foreign currencies, inflation and interest rate changes.

I hope the above provided information is useful to you.

If you are satisfied with the above provided information then please provide a positive feedback.

Thank you.

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