In recent financial crises, derivatives have amplified and propagated losses in markets. They are now posing risks

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In recent financial crises, derivatives have amplified and propagated losses in markets. They are now posing risks again but there has been a shift in the underlying nature of them. Vulnerabilities in the financial system have emerged, ironically, through some well-intentioned initiatives to reduce risk. 

Do you consider the factors identified above to sound the death knell of the use of derivatives as an effective way for companies to hedge interest and exchange rate risk?

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