91.   The cause for concern is only when aninvestor looking at Malaysia faces a foreign currency risk.

92.   The group also plans to shift its long-term investments from Asean countries into South Asia to reduce currency risks.

93.   The optioncontracts are therefore useful hedging transactions on currency risk.

94.   The simple way to reduce currency risk is to lock up currency cost ata predetermined rate.

95.   This involves banks selling dollars on the spot market and monetary authorities covering the currency risk via its new program, called non-deliverable forwards.

96.   Touching on foreign exchange translation, he said local conglomerates trading overseas which are subject to foreign currency fluctuations must look at how they can cover their currency risk.

97.   Under these assumptions, many companies took out dollar loans, converted them into rupiah and kept the currency risks open.

98.   What then are some of the basic rules to manage currency risk?

99.   Cailleout said Indian exporters were likely to face greater compliminate currency exchange risks.

100.   The company will shift more of its ATV manufacturing from Japan to the United States also to reduce currency fluctuation risks, the Nihon Keizai Shimbun newspaper said.