Post by Sol P on Nov 20, 2003 16:54:13 GMT -5
Hi Sol,
my name is Roman and i´m running a trading company in Germany. About your
interesting article:
please let me know if i´m wrong, in my opinion it would be better for a
company to sell the US bucks in the cash market and send it back home for
one year. But at the same moment the comapny sell US$ in the forward market
(12months) to an investment bank! So you benefit from the tax cut, but your
risk is nerly zero (if the US$ falls another 25%, you never know!!). If most
companies do it this way (i would do so, if it would be possible and
legal!!), the effect on the US$ is 0..the only "big looser" is the US
budget, loosing a lot of money again. Only if this "hedge" is/will be
forbidden (but who should control this??) or the companies shouldn´t hedge
the risk (are they so stupid?!?) than the effect on the US$ should be
positiv!!!
Greetings
Roman Kurevic
my name is Roman and i´m running a trading company in Germany. About your
interesting article:
please let me know if i´m wrong, in my opinion it would be better for a
company to sell the US bucks in the cash market and send it back home for
one year. But at the same moment the comapny sell US$ in the forward market
(12months) to an investment bank! So you benefit from the tax cut, but your
risk is nerly zero (if the US$ falls another 25%, you never know!!). If most
companies do it this way (i would do so, if it would be possible and
legal!!), the effect on the US$ is 0..the only "big looser" is the US
budget, loosing a lot of money again. Only if this "hedge" is/will be
forbidden (but who should control this??) or the companies shouldn´t hedge
the risk (are they so stupid?!?) than the effect on the US$ should be
positiv!!!
Greetings
Roman Kurevic