Concerning the covering of exchange market risks, assuming that a depreciation of the domestic currency is anticipated, one can say that there is an incentive for

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When a depreciation of the domestic currency is anticipated, importers have an incentive to rush to cover their future needs because the cost of goods they import will increase as their domestic currency becomes weaker compared to the currency of the exporting country. This makes imports more expensive, so importers seek to hedge against this risk by covering their exchange market risks in advance.

Concerning the Covering of Exchange Market Risks, Assuming That a Depreciation