Sovereigns look to hedge fuel imports after Morocco deal
A recent derivatives transaction carried out by Morocco, in which the country reportedly hedged its fuel purchases by buying call options on European diesel, has spurred the governments of other energy importing countries to consider similar deals, bankers say.
The Morocco deal – originally reported by the Financial Times on October 9 – was unusual because the majority of sovereign hedging deals have historically been executed by commodity exporting countries. Such countries include Mexico
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