consequences of currency mismatches in Chilean non-financial firms. As in previous firm level studies for Chile, we find that in … Chile actively reduce the risks associated with exchange rate exposure by matching the currency composition of their debt …

We consider the effect of hedging with foreign currency derivatives on Brazilian firms in the period 1997 through 2004 … higher than non-user firms. Hedging with currency derivatives allows firms to sustain larger capital investments, and also …, Scharfstein, and Stein (1993), at a time when capital in the economy as a whole is scarce. We further show that hedging increases …