Set up a money market hedging

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Reference no: EM133073674

Problem:

Country

Lending

Deposits

France (July - 2021)

2.40%

0.43%

Australia ( 2019-Q4)

4.80%

1.15%

New Zealand

4.76% (2017)

0.82%(March 2021)

United States (August -2021)

3.25%

0.06%

Singapore (May-2021)

5.25%

0.12%

If I were to set up a money market hedging, would the big difference in lending rate and deposits rate affects (e.g US&SG) the hedging effectiveness and the cost of hedging as well?

Reference no: EM133073674

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