ST Alpha - "I work for a company that has a lot of foreign currency exposure and does a lot of hedging. This could be a very expensive tax. " (Reading a Post)

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I work for a company that has a lot of foreign currency exposure and does a lot of hedging. This could be a very expensive tax.

Posted by spamlet (iPhone) (aka spamlet) Nov 3 '11, 07:00

We don't speculate, we just do business in 30 countries and have contracts in several more.

There is no way to "punish" speculative trades without hurting legitimate business transactions as well.

Should we (a midsized business) stop growing because Lehman screwed around?

Responses:

[deleted] 7
- it says it covers all derivatives. Foreign currency swaps are derivatives. - spamlet (iPhone) Nov 3, 07:05 6
  - [deleted] 4
    - But that's not what the Congresspeople are saying. They want it on all transactions. - spamlet Nov 3, 07:18 3
      - It's a proposed tax of 0.03%. If you're making one-time hedging transactions, would it be that onerous? -- nm - Roger More Nov 3, 07:28 1
        
        It is if we are hedging for two weeks on a funding coming in another currency. - spamlet Nov 3, 07:42
      - [deleted]
  - hmm, i never thought about this. - tRuMaN Nov 3, 07:06

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I work for a company that has a lot of foreign currency exposure and does a lot of hedging. This could be a very expensive tax.

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