Public sector holds back on FX

"The uncertainty is partly down to companies having to document all the hedges they put in place if they want to qualify for hedge accounting under the new IAS 39 rules," said Kelvin Jouhar, head of FX and FX derivatives at HBOS in London. "The new IAS rules will mean all derivatives will appear on the balance sheet at fair value, and any changes in this fair value will go through the P&L account. This could result in increased earnings volatility, which may be a concern to a company treasur