{
  "title": "Hedging Foreign Exchange Risk in Chile: Markets and Instruments",
  "publication": "IMF Working Papers, February 1, 2005",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/hedging-foreign-exchange-risk-in-chile-markets-and-instruments-18008",
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  "summary": "Policy makers have expressed interest in fostering the development of local foreign exchange derivatives markets with a view to reducing risks arising from currency mismatches between assets and liabilities in the corporate sector.",
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    {
      "heading": "Overview and Purpose",
      "content": "- Policy makers have expressed interest in fostering the development of local foreign exchange derivatives markets to reduce risks arising from currency mismatches between assets and liabilities in the corporate sector.\n- The paper:\n  - assesses foreign exchange exposure in the corporate sector in Chile,\n  - analyzes the current state of the foreign exchange derivatives market in Chile,\n  - argues that liquid and developed foreign exchange derivatives markets can help promote financial stability."
    },
    {
      "heading": "Key Findings and Analysis",
      "content": "- Foreign exchange exposure in the corporate sector in Chile is a central focus of the assessment.\n- The current state of the foreign exchange derivatives market in Chile is analyzed to determine its capacity to mitigate currency mismatch risks.\n- The paper presents the argument that liquid and developed foreign exchange derivatives markets can help promote financial stability."
    },
    {
      "heading": "Policy Implications and Recommendations",
      "content": "- Foster the development of local foreign exchange derivatives markets to reduce currency mismatch risk in the corporate sector.\n- Promote market liquidity and development of instruments to support corporate hedging needs and broader financial stability objectives."
    },
    {
      "heading": "Subject and Keywords",
      "content": "- Subject: Currencies, Exchange rate risk, Foreign exchange, Hedging, Options\n- Keywords: currency, derivative instrument, foreign currency, market, option contract, WP\n\n---\n\n Content in this bundle\n\n- wp0537\n  - wp0537 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0537 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/hedging-foreign-exchange-risk-in-chile-markets-and-instruments-18008"
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    "Authors: Jorge A Chan-Lau",
    "Published: February 1, 2005",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451860566.001",
    "Policy makers have expressed interest in fostering the development of local foreign exchange derivatives markets to reduce risks arising from currency mismatches between assets and liabilities in the corporate sector.",
    "The paper:",
    "Foreign exchange exposure in the corporate sector in Chile is a central focus of the assessment.",
    "The current state of the foreign exchange derivatives market in Chile is analyzed to determine its capacity to mitigate currency mismatch risks.",
    "The paper presents the argument that liquid and developed foreign exchange derivatives markets can help promote financial stability.",
    "Foster the development of local foreign exchange derivatives markets to reduce currency mismatch risk in the corporate sector.",
    "Promote market liquidity and development of instruments to support corporate hedging needs and broader financial stability objectives.",
    "Subject: Currencies, Exchange rate risk, Foreign exchange, Hedging, Options",
    "Keywords: currency, derivative instrument, foreign currency, market, option contract, WP",
    "**_wp0537**"
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