Often an MNE group will centralise treasury functions and implement risk mitigation strategies relating to interest rate and currency risks in order to improve efficiency and effectiveness with the result that individual entities may not contractually enter into hedging arrangements although their risk is hedged from the perspective of the MNE as a whole.
TPG2020 Chapter X paragraph 10.150
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By OECD
Category: OECD Transfer Pricing Guidelines (2017) | Tag: Financial transactions, Hedging, Migration of risk, Other party, Treasury functions
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