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More medium-sized companies hedging FX risk: HSBC exec

MMEs are likely to be more affected by currency volatility as they tend to be at the stage of going global

"During periods of extreme volatility, bid-offer spreads could widen to reflect the lack of liquidity in the market. Additionally, at a time when Asian currencies are under pressure, the cost of buying US dollars - as reflected by the forward premium - could increase," said Mr Evans.


MORE medium-sized companies are hedging their foreign exchange exposure, with the recent renminbi (RMB) devaluation a wake-up call, said Tim Evans, HSBC regional head of middle-market enterprises (MME).

The recent RMB devaluation is actually a wake-up call for companies,