29 The long-term hedge dilemma Bath Co., which relies on exporting, denominates its exports in pesos and receives pesos every month. It expects the peso to weaken over time. Bath recognises the limitation of monthly hedging. It also recognises that it could remove its transaction exposure by denominating its exports in US dollars, but it would still be subject to economic exposure. The long-term hedging techniques are limited, and the company does not know how many pesos it will receive in the future, so it would have difficulty even if a long-term hedging method were available. How can this business realistically reduce its exposure over the long term?