The rise of sovereign commodity risk management

Sovereign commodity risk management

Many countries have been plunged into financial chaos by commodity price swings, yet sovereign commodity risk management still lags behind the practices of the corporate world. This is rapidly starting to change, experts say, as several years of extreme volatility spur governments around the world to take a more active stance towards managing their exposure to commodity prices.

A few pioneering exporters and importers, especially in Latin America and Africa, have set up financial hedging