rwa
16 min
The Cost of FX Hedging: Rate Gap, Basis, Spread, Collateral
The cost of FX hedging reais into dollars is an interest-rate gap, not a bank fee. A cascade on B3 data from the 9.5-point policy gap to the 6.66% market price, the onshore dollar basis since 2006, real bank spreads, collateral, IOF and a calculator.
