81.   A SBC Warburg Dillon Reed report on power companies in Asia said weak economies and currency risks were still key concerns for many power companies in the region.

82.   Aside from a rise in funding costs, borrowings by banks from foreign exchange markets to fund loan growth and large projects expose them to currency risks.

83.   Bank Negara said the current economic situation indicates that lowering interest rates would not pose any inflationary or currency depreciation risks.

84.   Currency riskVolatility in currency is the main reason for currency risk.

85.   During August and September, more and more companies started to cover their currency risks as the rupiah started to be affected more seriously.

86.   He said this requirement was meant to ensure that exporters would use the hedging facility to protect themselves from currency risks instead of paying outstanding dollar obligations.

87.   In other international markets, corporates are able to buy an option contract to hedge against currency risks.

88.   It said there are broadly three factors to be taken into account in evaluation of a currency risk.

89.   Similarly, such moves will diversify their currency risks.

90.   Tarrin would reportedly like to see as much of these debts as possible -- mostly denominated in US dollars -- converted into yen to reduce currency risks.