Are currency correlations perfectly stable over time

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Why would an MNC consider examining only its ‘net' cash flows in each currency when assessing its transaction exposure?

Are currency correlations perfectly stable over time? What does your answer imply about using past data on correlations as an indicator for the future?

Reference no: EM131291228

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How does your foreign exchange exposure arise : Could your exposure be reduced by investing in manufacturing facilities abroad? (Association of Corporate Treasurers: Part II, September 1985, Paper in Currency Management)

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