KrishjjjPro
In the last para of this que why would nexran hedge against a potential decline in the USD relative to TRD.and why trenmool will sell its US reserves
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Nexran should hedge against a potential decline in the USD relative to the TRD because if the USD were to decline in value, the Trundool Republic may decide to reduce its USD-denominated assets, which could lead to a decrease in demand for Nexran’s products and a potential decrease in sales. By hedging against this potential decline in the USD, Nexran can protect itself from potential currency losses and ensure that it can continue to sell its products to the Trundool Republic.
As for why the Trundool Republic may decide to reduce its USD-denominated assets, it could be due to a number of reasons. For example, the Trundool Republic may want to diversify its foreign reserves or reduce its dependence on the USD. Additionally, if the Trundool Republic’s current account surpluses continue to grow, it may have an increasing amount of USD reserves, which it may want to sell to maintain a balanced reserve portfolio.