The cost of hedging the Caisse’s fund foreign exchange risk of its assets outside Canada had increased (due to the declining value of the Canadian dollar). 8.9 billion losses! Would it be that the Caisse make a deal on selling CAD$ that locks in a buy CAD$ in the future? I thought that currency hedging is used to minimize risk in exchange rates and currency values? Is that too risky for a pension fund?

Also, can a small business doing import/export invest in a forex swap? What’s the minimum amount? would you advise to start with a forward trade instead?

Thank you.