In this chapter, participants in Forex—from multinational corporations to international banks, to FCM dealers, to retail traders—describe their roles in the currency markets.
Joachim Herr is the head of risk management at BMW International. In this interview, he discusses how BMW handles currency exposure and trading methodologies.
Whenever we sell a car—for example, in Thailand—we get Thai baht (THB), but our cost basis is to a large extent in euros. What we need to make sure of from a currency perspective is that the THB revenue we receive is worth more than our euro-denominated costs in order to stay comfortable. Without risk management, the large exchange rate fluctuations would lead to times of very ...
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