The Danish Central Bank has completed the hedging of payments of USD3.7 billion so that the department of defence is able to acquire the Lockheed Martin F-35 Joint Strike Fighter at fixed price in its local currency.
Copenhagen agreed in 2016 to acquire 27 conventional take-off and landing F-35A variants of the fighter to replace its incumbent F-16 fleet, and has hedged the dollars so that they are available at a fixed price when they are needed.
This process commenced at the beginning of 2018, the bank said, and has now been completed.
“The process of entering into forwards, which ensure a fixed price of dollars when the government needs them has been smooth,” Frank Nielsen, assistant governor of the bank, said.
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