Why european mncs consider hedging their future remittances

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Reference no: EM13936221

Interpreting a large forward discount. The interest rate in Indonesia is commonly higher than the interest rate in the UK and the euro-zone, which reflects a high expected rate of inflation there. Why should European MNCs consider hedging their future remittances from Indonesia to their parent even when the forward discount on the currency (rupiah) is so large?

Reference no: EM13936221

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