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What is DoD Foreign Currency Exposure Analysis about?

The Department of Defense incurs billions of dollars in costs denominated in foreign currencies each year to operate facilities overseas. However, the DoD takes a risk-neutral approach and does not attempt to hedge against currency fluctuations. As a result, the amounts budgeted for overseas operations often differ from what is actually required to pay expenses due to changes in exchange rates. The author examines the implications of the DoD

Author

carmennistor03

Language

EN