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English definition of “currency hedge”

currency hedge

noun [C] FINANCE, STOCK MARKET
an agreement to buy a currency at a particular rate in the future. Companies that export goods use currency hedges to be certain about the amount they will receive for particular goods when they deliver them: The currency hedge had been intended to protect the company against a sharp rise in the value of the pound against the euro.
currency hedging noun [U]
(Definition of currency hedge noun from the Cambridge Business English Dictionary © Cambridge University Press)

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