Dear experts

can you please look at my explanation and see if it is 100% accurate?

If you would like to adjust anything, please inform me.

MNCs may mitigate the currency fluctuations risk by not bringing their generated income abroad unless they truly need it. This will help MNCs mitigate currency fluctuations.

Opening a foreign currency bank account for MNCs with huge overseas assets. For such MNCs, it may be better to keep their generated income in foreign bank accounts in each market where the MNC has vast assets.

This will significantly mitigate the risk of the foreign exchange market because MNCs will not need to regularly bear the burden of unfavorable exchange rates when bringing the generated overseas income to their domestic country.

Moreover, MNCs that keep their income in overseas bank accounts can utilize these amounts to pay various obligations.

For example, if an MNC receives USD 2 million by 20 June in the US, this MNC needs to pay USD 1.9 million to an American supplier on 20 July. The MNC may transfer the income of 2 million USD to its US bank account; on 20 July, the MNC can pay the amount of 1.9 million to the supplier. If it so happens that the MNC decides to bring the remaining 0.1 million home, only this amount will be exposed to currency fluctuations, significantly mitigating the exchange rate risk.