Kshitij imports are cheaper than open imports even

In the previous page we saw how leaving Imports has been cheaper than hedging. At the same time, we noted that in such a case it is emotionally impossible to not panic and cover Imports at a high level after a sharp bout of Rupee depreciation.

There is a need for a systematic solution for hedging Imports, which avoids both the panic driven mistake of covering at high levels and the high costs of consistently hedging with Forwards.

The answer lies in the KSHITIJ Hedging Method.

As seen in the table alongside, the Import Net Efffective Exchange Rate (NEER) under the KSHITIJ Hedging Method has been 60.5982.

This has been 9paise or 0.14% cheaper than the average of 60.6841 on Open Imports, which in turn is cheaper than the average of 61.0334 on consistent Forward Covers.

NOTE that the rate achieved under the KSHITIJ Hedging Method includes hedging cost.

How come the KHM rate has been cheaper than the Open Imports?

The KSHITIJ Hedging Method takes hedging decisions on the basis of month-wise hard number forecasts over the 1-12 month period, each having a reliability ranging between 51% and 63%.

This enables the system to more efficiently decide WHEN to hedge and FOR WHICH PERIOD to hedge.

Work with us and get the power of the KSHITIJ Hedging Method – a complete combination of reliable forecasts + tested strategies + committed personalised service – on your side.

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It has been cheaper to leave Imports open