As interest rate differentials across currencies during the last decade have been considerable, and the region is mostly export-oriented towards the Euro zone, it may appear that efforts of market participants’ education on such issues as risks linked to currency mismatch and existence of hedging instruments are long overdue.
This is especially important for the corporate and small business sectors that have the ability to access a wide range of instruments (such as futures, forwards, options and swap contracts) that may serve as protective tools, especially during these turbulent times with rapid changes in international markets.