USD on an all time low - Loss of income for MA

[AJack10600]

Originally Posted by aridash

please elaborate, why not? they are certainly not too large, and as you can open a FX trading account for about $1k these days they are not too small either.

Opening an FX account is not hedging you against FX risk... I doubt MA have someone in their Company who makes sure their FX exposure is actively hedged with FX option contracts... I would love to be wrong on that though... maybe they do have a good bank manager who does it for them. Even though, they would be able to "soften" the FX effect but they would still be affected by the drop in USD value...

[alh]

Do you really think MA is keeping much of their value in $ these days?

I think they are transferred to other currencies (aka euro) pretty immediately at the moment of deposit.

What happens though, is that the value of the universe as a whole is decreasing, since it is counted in peds, which for all practical uses are the same as $.
But this actually just helps MA, it gives them more money to play around with and do what they want with. (The difference between the $ value that they have to guarantee, and the actual value of the cash they got (since it is now in euro))

Just my 2c.