Charitable sector gets savvy in FX hedging

Charities and not-for-profit organisations might not be the most typical participants in the foreign exchange market, but their hedging needs are as acute as any other corporate and, according to asset managers that act on their behalf, they are becoming more practised in their hedging strategies, driving up FX volumes.

A gradual increase in FX market volatility in recent years has boosted the need for strategic risk management, and managers say charities increasingly now hedge their positions