Meaning of “currency hedge” in the English Dictionary

"currency hedge" in Business English

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currency hedgenoun [ C ]


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 ]

The company is happy with its currency hedging strategy, which has helped offset the impact of the weaker US dollar.

(Definition of “currency hedge” from the Cambridge Business English Dictionary © Cambridge University Press)