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[return to "Apple Stops Online Sales in Russia Over Ruble Fluctuations"]
1. mikhai+Y1[view] [source] 2014-12-16 19:20:32
>>colone+(OP)
A company makes a smart decision to pause sales in order to ensure they're not selling their products at a loss due to the drop on the value of rubies....

One shouldn't expect otherwise.

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2. acchow+64[view] [source] 2014-12-16 19:39:56
>>mikhai+Y1
Apple could purchase FX swaps and charge customers a "FX fluctuation surcharge". That's better than shutting down the store...
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3. tjradc+O4[view] [source] 2014-12-16 19:47:17
>>acchow+64
That presumes they have some idea of the short-term forward volatility of the rubble, which no one does right now. Otherwise they have no idea what the surcharge ought to be.

Furthermore, setting up such things is not cost-free, and if the high-volatility situation is temporary (which is very likely) it could well be that it isn't worth the cost, complexity and risk.

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4. martin+0a[view] [source] 2014-12-16 20:34:47
>>tjradc+O4
>Otherwise they have no idea what the surcharge ought to be.

Nonsense. The surcharge is the difference between the spot rate and the futures rate with which they hedge. They can easily predict (to a reasonable degree) the volume they need to hedge by estimating their market.

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