Businesses can adopt several strategies to mitigate the risks associated with currency depreciation:
Hedging: Using financial instruments like forward contracts and options can protect against adverse currency movements. Diversification: Diversifying markets and supply chains can reduce dependency on a single currency and spread risk. Cost Management: Implementing cost control measures and improving operational efficiency can help absorb the impact of higher import costs. Pricing Strategies: Adjusting pricing to reflect currency fluctuations can help maintain margins.