Board-Approved Forex Policies

As part of the forex hedging implementation plan, management will develop a Foreign Currency Hedging Policy to be approved by the Board of Directors. This policy will act as a guideline for managing foreign currency risk. A detailed policy includes the following components:
Hedging objectives Currency exposures Hedging timeframes for future exposures (3, 6, 12, or 24 months) Authorized hedging products Speculation limits and authorizations, if applicable Internal controls (segregation) & reporting Performance measures (not based on whether the hedge is profitable) Risk management structure Departmental responsibilities: trading, reporting, compliance (tax, GAAP), and management reports (treasurers, controllers, and tax) Board Approval