U.S. Businesses Preparing For Worst on Euro Risks
Reuters said in an article posted by the Chicago Tribune, that three years into the European debt crisis, with the likelihood of the euro’s demise still remote, U.S. multinationals are making preparations for a number of grim scenarios that include the worst: the collapse of the euro.
Reuters noted that large U.S. corporations have been actively looking to lower their hedging costs by taking advantage of the weak euro, while others have been moving money daily to other financial centers to reduce euro zone exposure.
Reuters quoted Martin Donovan, deputy policy and technical director of the Association of Corporate Treasurers, as saying, “The larger companies have been thinking about this for a long time. And it’s really gone beyond just a pure housekeeping exercise.”
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