Insights on FX Management & Hedging Strategies

USD has an interest rate of 4.5% p.a while SGD has an interest rate of 2.8% p.a. USDSGD forward rate will be:

• Higher than spot rate

• Same as spot rate

• Lower than spot rate

• Unable to determine

FX spot trades are generally settled on a T+2 basis. Which of the following currency pairs is an exception?

• USD/IDR

• USD/MYR

• USD/PHP

• USD/BRL

Which of the following is not a restricted currency?

• IDR

• SGD

• TWD

• PHP

There are different types of FX risks. One of them is the risk faced by a company from fluctuating exchange rates that can affect its future cash flows, market value, and competitive position, which is also known as:

• Transaction risk

• Translation risk

• Economic risk

• Volatility risk

Which of the following Donald Trump policy is expected to have a weakening effect on the USD?

• Tariffs – 10% universal tariffs and/or 60% tariffs on China imports

• Push to end wars – brokering peace in Ukraine and Middle-East

• Immigration – mass deportation

• Climate change - increase U.S. production of fossil fuels

Which currency pair has the largest FX volatility?

• USD/BRL

• USD/CNH

• USD/IDR

• USD/SGD

Which of the following FX products does Sea Group use for FX hedging?

• FX Spot

• NDF

• FX Options

• All of the above

Which of the following is NOT a characteristic of FX NDF (Non-Deliverable Forward)?

• Usually traded offshore

• Simultaneously buys and sells one currency

• On value date, the trade will be settled in USD

• The product is generally available for restricted currency