Eximbank to launch forex hedging

Romania’s Export and Import Bank (Eximbank) is to launch foreign exchange hedging products for exporters. Exchange rate fluctuations can have a significant impact on the profits of foreign trade companies. Eximbank’s main goal is to support foreign trade by specific financial-banking and insurance instruments. Its plans were prompted by the heavy fluctuations of the exchange rate on the Bucharest market where the ROL saw swings of nearly 10% against the euro and the dollar in a matter of days. Forex hedging products allow exporters and importers to set in advance the exchange rate at which they collect or make payments for foreign trade operations. “We want to begin forex hedging operations as of this year. It is true that exporters are suffering from the domestic currency appreciation, though we are convinced they are more seriously hurt by the heavy fluctuations of the exchange rate,” said Eximbank chairperson Mariana Diaconescu. ZF