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How would a company seek to lessen the foreign exchange risk

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How would a company seek to lessen the foreign exchange risk for the acquisition of long term assets or liabilities denominated in foreign currency?

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One way to do this is to arrange a forward foreign exchange contract. This is an agreement initiated by you to buy or sell a specific amount of foreign currency at a certain rate, on or before a certain date.

Forward foreign exchange contracts are a secure and simple way of hedging when you're confident your deal will go ahead and ...

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