Hedge Exchange Exposure by Neil Jenkin
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Hedge Exchange Exposure
The video selected for the subject matter is a presentation by Neil Jenkin, a financial advisor with Barclays Bank, who explains about managing foreign exchange exposures while holding money in different currencies. The presenter explains that foreign currencies can arise in the event that a person holds some different currencies or a lot of money in one currency, or if a person is paid salary in foreign currency (YouTube, 2015). The presentation gives an example of an individual earning in another currency and settles most of his bills in another currency as well as having assets in different denominations (YouTube, 2015).
The video presentation gives a clear illustration of the extent of volatility a currency can undergo and the measures to take situationally to hedge the exposure. Hedging is by reducing the exposure of non-volatile currency while increasing exposure to the most volatile currency. In the event a person suspects that a currency will weaken in future, he or she can take a chance of booking a place in the future (YouTube, 2015). Managing exposure requires having proper knowledge of exposure, considering the reduction of exposure and diversification of currencies, holding an account in the core currency, or requesting a debit card in other currencies. The presenter was trying to give alternatives of hedging currency exposures that would help sustain the business (YouTube, 2015).
The video was highly active with the speaker having clarity and using text notes to explain on points. The most interesting thing about the presentation is how simple the speaker was trying to make the solutions be, giving alternatives of responding to currency exposures. The only improvement is that instead of having a next short clip on the same line of the matter, the presentation was better done in one recording. In general, the video covered the major area of understanding hedging currency exposures.