What was the effect of introducing the Euro with respect to hedging?

Question

Quizplus · Accepted Answer

Introducing the Euro has had multiple effects on hedging. Firstly, Euro-zone trading partners no longer need to hedge each other's currencies, as they are all using the same currency. Additionally, accounts receivable from sales to a customer in one Euro-zone country acts as a natural hedge against accounts payable to a supplier in another Euro-zone country for companies outside the Euro-zone. Lastly, there are fewer currencies to hedge since multiple currencies have been replaced with the Euro. Therefore, all of the above options are correct.

What Was the Effect of Introducing the Euro with Respect