Additionally, if such structures are banned, some corporates may not hedge their exposures due to costs, and this may result in aggregation of open currency risk in the system, which is riskier than allowing hedging within a range.
It has been suggested that structures may be allowed with safeguards, such as the pay off of such a strategy lies between an unhedged exposure and an exposure hedged through a forward contract, allowing the products only against underlying exposures, not allowing leverage structures, limiting to corporate with threshold turnover and net worth, etc. 51.