Thomson Reuters has restructured its risk-management currency hedging program, The Wall Street Journal reports. The move arises from the 2008 acquisition by Canada’s Thomson of the U.K.-based Reuters Group, which created a foreign exchange risk for Thomson’s legacy businesses. In order to quantify its exposure, Thomson evaluated the annual potential exposure of each currency pair, which added up to $350 million in cash-flow risk. The company then lowered its risk by about two-thirds, to $125 million of real economic exposure, which was further cut by its executives in half, to $65 million, by hedging three or four currencies.
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