Search
 
Alexander Hamilton Awards

Winning the Battle Against Won Exposures

Congratulations to eBay, winner of the 2020 Gold Alexander Hamilton Award in the category Best Practices in Restricted/Emerging Markets!

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

For more than two decades, the digital marketplaces of eBay Inc. have brought together buyers and sellers around the world. The company’s Korean platform is a top brand in Korea and one of the top five e-commerce marketplaces in the world by sales volume. That explains why exposure to the Korean won presents a significant foreign exchange (FX) risk for eBay globally.

“Revenue and income derived from our Korean operations are denominated in Korean won,” says Shan Anwar, director of investments and payment integration for eBay Inc. “Depending on where FX rates are, Korea is usually in the top five markets for us in terms of currency risk.”

eBay won an Alexander Hamilton Award several years ago for its innovative approach to mitigating exposures of the dollar-functional parent company to European subsidiaries’ FX risk. If, for example, a euro-functional sub is carrying exposure to the British pound (GBP), the subsidiary mitigates its own risk by executing a standard hedge that sells pounds and buys euros. Then a euro-based eBay entity buys a security that delivers an equivalent amount in dollars at the same time the euro-pound forward expires. The solution mitigates FX risk and allows for hedge accounting at every level of the company.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Meg Waters

Meg Waters

Meg Waters is the editor in chief of Treasury & Risk. She is the former editor in chief of BPM Magazine and the former managing editor of Business Finance.

More from this author

 

Recommended Stories

Biden Will Review Trump’s China Tariffs

Biden Will Review Trump’s China Tariffs

Bloomberg News |

  U.S. President Joe Biden said he’ll review Trump-era tariffs imposed on imports from China amid growing calls from businesses to remove…

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2022 ALM Global, LLC. All Rights Reserved.