Hanwha Ocean, 7Month 10Day 20billion-dollar forward sales… hedging ratio 70% or higher

Hanwha Ocean sold 7Month 10Day 20billion dollars' worth of forwards, putting intraday downward pressure on the won-dollar exchange rate. This took place in the Seoul foreign exchange market.

The forward sales volume was reportedly placed through domestic banks 2~3and foreign banks. The transactions are said to have been carried out across several banks.

The company has effectively decided to change its foreign exchange open strategy and raise its hedge ratio to 70% or higher. This decision is being implemented through forward sales.

Hanwha Ocean began raising its hedge ratio last month by selling forward exchange contracts, 7and has continued to steadily increase the ratio this month as well.

The company is said to be planning to sell additional forwards next week as well. Any further selling and its scale will need to be confirmed through future disclosures.

This sale is classified as a measure to reduce foreign exchange exposure, and the details, including the size of each contract and the allocation by bank, can be confirmed in the company’s subsequent disclosures.

The won-dollar exchange rate was reported to have come under intraday downward pressure due to the sale. Market reactions varied somewhat depending on the trading hours.

It will be necessary to check Hanwha Ocean’s future disclosures and whether related details are released in the additional selling plan scheduled for next week.