...elaborating, a corporate treasurer might want to hold some Euros on balance sheet if they expect to have future liabilities or expenses denominated in Euros. That is a hedge.
On the other hand, a treasurer that holds Euros because they have reasons to think the Euro will appreciate in value in the future is simply speculating. And using the company's balance sheet to do so.
This is looking like a bet. A well-reasoned bet, but a bet nonetheless.
On the other hand, a treasurer that holds Euros because they have reasons to think the Euro will appreciate in value in the future is simply speculating. And using the company's balance sheet to do so.
This is looking like a bet. A well-reasoned bet, but a bet nonetheless.