How to arrange Natural Hedging and minimise the cost of derivatives.

Noting the existing distribution of fixed currency assets and liabilities with relevant hedging arrangements – also all net currency cash flows, forecasts and volatilities – with opportunities for natural hedging, managing the net exposures – multi-currency overdrafts are very effective.

Hedging instruments for residual exposures are noted and measured for cost efficiency.

This is a key area giving rise on the one hand to major exposures and, correspondingly, assuming full transparency of positions, for natural hedging and major cost economies.