Wie funktioniert ein Währungshedge?

A Währungshedge is a way for businesses to protect themselves from changes in the value of foreign currencies. It works by reducing the risk of losses that can be caused by shifts in the exchange rate. For example, let’s say a business in the United States buys a product from a company in the United Kingdom, and pays in US dollars. The value of the US dollar might drop against the pound after the purchase, which means the product costs more than the business expected. A Währungshedge can help to protect against this kind of unexpected cost. To use a Währungshedge, a business can enter into a contract with another company (called a counterparty) to buy a certain amount of foreign currency at a set price. This locks in an exchange rate, so if the value of the foreign currency goes up, the business can make a profit by selling it back at the higher rate. Analogies can help to explain a Währungshedge. It’s like buying insurance for the value of a foreign currency. Just like insurance protects against unexpected losses, a Währungshedge protects against losses due to swings in exchange rates. Fun Fact: Currency hedging is used by companies around the world to protect against losses from changes in exchange rates. In 2017, more than $6 trillion was hedged against currency fluctuations.