Transaction exposure can also be hedged by lending and borrowing in the domestic and foreign money markets. Generally speaking, the firm may borrow (lend) in foreign currency to hedge its foreign currency receivables (payables), thereby matching its assets and liabilities in the same currency.
Using the same example presented above, Boeing can eliminate the exchange exposure arising from the British sale by first borrowing in pounds, then converting the loan proceeds into dollars, which then can be invested at the dollar interest rate.