Title Assessing Wrong Way Risk You are a treasury risk analyst in Company G, a multinational industrial conglomerate with manufacturing, sales, and investments in over 30 countries. Although the company's executive leadership has delegated many strategic and operational decisions to business division and country heads, financial decisions such as funding, bank relations, and FX hedging are managed globally by the company's Corporate Treasury. You receive FX transaction hedging proposals daily from business divisions and countries around the world. It is your responsibility to assess the risks in each proposal and recommend either approval, denial or amendment to the Assistant Treasurer, according to the company's Treasury Risk Management Policy and Procedures. Today you have received the following 4 FX hedging proposals. Your job is to analyze them and reply with your recommendations. 1) RUR hedging proposal The treasury team based in Moscow wants to sell RUR forward for 1 year against EUR, in order to lock in the return on a USD 20mn purchase of Russian Government T-Notes whose yield is especially attractive. They will fund the investment with a 1-year EUR-denominated intercompany loan from Company G's European holding company, based in Geneva. They request approval to close the FX forward with Sberbank, Russia's largest bank which is 50%-owned by the Russian Central Bank. Description 2) BRL hedging proposal The treasury team based in Sao Paulo wants to buy a series of BRL forwards against the USD, in order to hedge the FX rate for USD 15mn of payments for iron ore exports taking place over the next 6 months. They request approval to close the FX forwards with Banco Itau, Brazil's 2" -largest bank by asset size, which is publicly-owned. 3) IDR hedging proposal The treasury team based in Jakarta wants to sell IDR forward against USD, in order to lock in the FX rate for payment of USD 12mn of grain to be imported and sold into the local market by Company G's distribution company during the next 9 months. They request approval to close the FX forwards with Bank Mandiri, Indonesia's largest bank, which is 60%- owned by the Indonesian Government. 4) KRW hedging proposal The treasury team based in Seoul wants to enter into a USD 5mn KRW/USD swap, in order to lock in the FX rates for 6-monthly principal and interest payments on a 3-year USD- denominated intercompany loan from Company G's Asian holding company, based in Singapore. They request approval to enter into the swap with Citibank's Seoul branch.Title Assessing Wrong Way Risk You are a treasury risk analyst in Company G, a multinational industrial conglomerate with manufacturing, sales, and investments in over 30 countries. Although the company's executive leadership has delegated many strategic and operational decisions to business division and country heads, financial decisions such as funding, bank relations, and FX hedging are managed globally by the company's Corporate Treasury. You receive FX transaction hedging proposals daily from business divisions and countries around the world. It is your responsibility to assess the risks in each proposal and recommend either approval, denial or amendment to the Assistant Treasurer, according to the company's Treasury Risk Management Policy and Procedures. Today you have received the following 4 FX hedging proposals. Your job is to analyze them and reply with your recommendations. 1) RUR hedging proposal Question The treasury team based in Moscow wants to sell RUR forward for 1 year against EUR, in order to lock in the return on a USD 20mn purchase of Russian Government T-Notes whose yield is especially attractive. They will fund the investment with a 1-year EUR-denominated intercompany loan from Company G's European holding company, based in Geneva. They request approval to close the FX forward with Sberbank, Russia's largest bank which is 50%-owned by the Russian Central Bank.Assessing Wrong Way Risk Questio n You are a treasury risk analyst in Company G, a multinational industrial conglomerate with manufacturing, sales, and investments in over 30 countries. Although the company's executive leadership has delegated many strategic and operational decisions to business division and country heads, financial decisions such as funding, bank relations, and FX hedging are managed globally by the company's Corporate Treasury. You receive FX transaction hedging proposals daily from business divisions and countries around the world. It is your responsibility to assess the risks in each proposal and recommend either approval, denial or amendment to the Assistant Treasurer, according to the company's Treasury Risk Management Policy and Procedures. Today you have received the following 4 FX hedging proposals. Your job is to analyze them and reply with your recommendations. 2) BRL hedging proposal The treasury team based In Sao Paulo wants to buy a series of BRL forwards against the USD, In order to hedge the FX rate for USD 15mn of payments for Iron ore exports taking place over the next 6 months. They request approval to close the FX forwards with Banco Itau, Brazil's 2"d -|argest bank by asset size, which is publicly-owned. Title Question Assessing Wrong Way Risk You are a treasury risk analyst in Company G, a multinational industrial conglomerate with manufacturing, sales, and investments in over 30 countries. Although the company's executive leadership has delegated many strategic and operational decisions to business division and country heads, financial decisions such as funding, bank relations, and FX hedging are managed globally by the company's Corporate Treasury. You receive FX transaction hedging proposals daily from business divisions and countries around the world. It is your responsibility to assess the risks in each proposal and recommend either approval, denial or amendment to the Assistant Treasurer, according to the company's Treasury Risk Management Policy and Procedures. Today you have received the following 4 FX hedging proposals. Your job is to analyze them and reply with your recommendations. 3) IDR hedging proposal The treasury team based in Jakarta wants to sell IDR forward against USD, in order to lock in the FX rate for payment of USD 12mn of grain to be imported and sold into the local market by Company G's distribution company during the next 9 months. They request approval to close the FX forwards with Bank Mandiri, Indonesia's largest bank, which is 60%- owned by the Indonesian Government. Title Question Assessing Wrong Way Risk You are a treasury risk analyst in Company G, a multinational industrial conglomerate with manufacturing, sales, and investments in over 30 countries. Although the companvs executive leadership has delegated many strategic and operational decisions to business division and country heads, financial decisions such as funding, bank relations, and FX hedging are managed globally by the company's Corporate Treasury. You receive FX transaction hedging proposals daily from business divisions and countries around the world. It is your responsibility to assess the risks in each proposal and recommend either approval, denial or amendment to the Assistant Treasurer, according to the company's Treasury Risk Management Policy and Procedures. Today you have received the following 4 FX hedging proposals. Your job is to analyxe them and reply with your recommendations. 4l KRW hedging proposal The treasury team based in Seoul wants to enter into a USD Smn KRW/USD swap, in order to lock in the FX rates for 6-monthly principal and interest payments on a 3-year USD- denominated intercompany loan from Company G's Asian holding company, based in Singapore. They request approval to enter into the swap with Citibank's Seoul branch