The Debt Management Unit reported Tuesday that it executed a $75 million hedging deal.
Accountant General Michal Abadi-Boiangiu and her office continue to intervene on the foreign exchange market to minimize Israel’s foreign debt. The Debt Management Unit reported Tuesday that it executed a $75 million hedging deal.
The Ministry of Finance stated that “This deal was executed as part of the Accountant General’s hedging policy, with the goal of reducing our exposure to changes in the foreign currency exchange rates. Market conditions and the shekel-dollar exchange rate support the execution of hedge deals. These deals are executed as part of the Accountant General’s annual work plan.”
Put simply, the Ministry of Finance is taking advantage of the weak dollar to guarantee itself the low exchange rate (buying the option), for the repayment date on its dollar debt. In recent months, the Debt Management Unit has executed hedging deals totaling $750 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 6, 2013
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