Hungary’s forex dilemma

New angles

“The referendum is a further signal to both domestic and international corporates that, as Hungarian capital markets become more integrated into Europe, and cross-border flows increase, the need for more sophisticated financial instruments to manage market risk will develop in the run-up to EMU entry,” says Anne Louise Gibbins, an emerging markets specialist at JP Morgan Chase in London.

Hedging foreign currency risk, once rare, has become more common following the central bank’s decision to