Currency Risks and Hedging: Since funds and liabilities may be denominated in currencies other than the base currency of the deposit, changes in the control regulations or in exchange rates between the base and other currencies may positively or negatively affect the deposit. Changes in exchange rates may affect the value of the shares, dividends, interest, profit or loss. The exchange rate between currencies is determined by supply and demand in the currency exchange markets, international balance of payments, government intervention, speculation and other economic and political conditions. If the currency in which securities are denominated goes up against the base currency, securities will increase in value. And contrariwise, decline in the exchange rate of the currency will negatively affect the value of securities. Deposit funds can be used in transactions with foreign currencies in order to hedge currency risk. However, there is no guarantee that hedging or protection will be achieved. This strategy may also limit trader’s profit on securities in case of the increase in the currency of securities versus the base currency.