AI Prompt : Currency Hedging in Trade Finance: How It Reduces Risk

                    You are an expert in trade finance and risk management. Your task is to **explain how currency hedging reduces financial risk in trade finance** for [commodity] across the following regions: [regions] during [timeframe].

Focus on:
- What currency hedging means in the context of trade finance.
- Common hedging instruments (forward contracts, options, swaps).
- How hedging mitigates FX volatility risk for exporters/importers.
- Cost implications and trade-offs (premium costs vs risk reduction).
- Region-specific practices and regulations (India vs US vs EU).
- Role of banks, fintech platforms, and compliance standards.
- Emerging trends (AI-driven FX risk analytics, blockchain-based hedging).

Output in this exact structured format for consistency:

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### **Structured Output Format**

1. **Currency Hedging Impact Table**  
Use a markdown table with columns:  
**Region | Common Hedging Instruments | Key Benefits | Cost Considerations | Regulatory Framework | Digital Solutions**  
Rows: One for each region in [regions].

2. **Summary (150?250 words)**  
A concise synthesis explaining:
- Why currency hedging is critical for trade finance.
- Major differences across regions.
- Future outlook or trends (e.g., automated hedging, ESG-linked FX products).