Forex Cover

Mar 28, 2014 (LBO) – BRAC Lanka Finance Plc, said it had hedged the foreign exchange risk of a two million US dollar loan from its parent by creating a forex deposit and borrowing rupees against it. BRAC International Holdings BV has given 3-year 2 million US dollar loan to BRAC Lanka at 7.0 percent a year.

BRAC Lanka had placed it in Sri Lanka’s Seylan Bank at 4.0 percent a year.

Using the dollar deposit as security, BRAC had borrowed rupees at 9.5 percent.