RMB urges businesses to hedge against exposures

Hedging is defined as a risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities. In effect, hedging is a transfer of risk without buying insurance policies.

RMB officials at a risk management workshop held in Gaborone on Wednesday, discussed hedging instruments available in other African countries, cross-border banking in Africa and methodology when executing large hedges.