100分求currency hedging的定义解释

Currency hedging (also known as Foreign Exchange Risk hedging) is used both by financial investors to parse out the risks they encounter when investing abroad,as well as by non-financial actors in the global economy for whom multi-currency activities are a necessary evil rather than a desired state of exposure。For example,labour costs are such that much of the simple commoditized manufacturing in the global economy today goes on in China and South-East Asia (Philippines,Vietnam,Indonesia,etc。)。The cost benefit of moving manufacturing to outsource providers outweighs the uncertainties of doing business in foreign countries,so many businesses are moving manufacturing operations overseas。But the benefits of doing this have to be weighted also against currency risk。If the price of manufacturing goods in another country is fixed in a currency other than the one that the finished goods will be sold for,there is the risk that changes in the values of each currency will reduce profit or produce a loss。Currency hedging is akin to insurance that limits the impact of foreign exchange risk。Currency hedging is not always available,but is readily found at least in the major currencies of the world economy,the growing list of which qualify as major liquid markets beginning with the "Major Eight" (USD,GBP,EUR,JPY,CHF,HKD,AUD,CAD),which are also called the "Benchmark Currencies",and expands to include several others by virtue of liquidity。