As a company that operates their business internationally, Boeing interacts with customers and suppliers whose home currencies may not be U.S dollars. Boeing is exposed to a variety of market risks, including the effects of changes in interest rates, foreign currency exchange rates, and commodity prices. To help protect against the risks from currency fluctuations, Boeing generally turns to currency hedging. This preserves the exchange rate between two currencies at a know value. Hedging is implemented by entering into "financial instruments such as forward contracts, which allows Boei…
