Retrieving "Receivables" from the archives
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Currency Risk
Linked via "receivables"
These involve using operational or financing structures within the firm to naturally offset currency mismatches:
Netting: Offsetting payables and receivables denominated in the same foreign currency across different subsidiaries.
Leading and Lagging: Adjusting the timing of payments or receipts based on expected rate movements. For instance, if a company expects a foreign currency to depreciate, it will "lead" (pay early) or "lag" (delay receiving payment).
**Currency Matching (or Denomination Matching…