[fgonzag]

Not a killing. Only 25% of Mexico's oil production was hedged. So we're still losing ton of money on the other 75%, since oil is one of the main revenues of the Mexican goverment.

It's just insurance so when the prices crash the country doesn't go with it. Since no insurance company in the world can insure even a small govt, the only way to go for it is with financial instruments.

We rather lose a bit of money during the good times and not get wiped during the bad times.

It also seems Hacienda is quite decent at reading the markets from the article, I didn't know as much.