A working group of the Risk Management Committee has examined alternative approaches to the prospective management of foreign exchange risk, particularly for Emerging Market (EM) currencies, and is pleased to present the findings in the publication “FX Overlay Management.”

“We begin by addressing the specific characteristics of EM currencies and explaining what FX overlay management means,” reports one member of the working group. A practical example is used to illustrate the functionality and applicability of FX overlay approaches. With this publication, we aim to provide treasurers with decision-making support and to explain key considerations when selecting an FX overlay model. “We are especially pleased to provide VDT members not only with a technical overview, but also with a comparative framework in which FX overlay models from various providers are presented according to standardized criteria,” the working group members add.

Die deutsche Fassung finden Sie unter diesem Link.

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