NT$4 billion in losses for CHT due to poorly timed contract
by David Masters
March 7, 2008
Chunghwa Telecom (CHT) have reported in a press release that the company has lost a total of NT$4.0 billion (US$129 million) because of a 10 year foreign exchange derivative contract that was signed with international investment bank Goldman Sachs last year.
Foreign exchange derivative contracts are designed to protect against exchange rate fluctuations. The contract was signed because CHT had to buy US dollars for the company’s international call settlement and capital expenditure fees.
Between September and December 2007 CHT suffered a total mark-to-market unrealised valuation loss of NT$500 million. This figure had risen to NT$4 billion by 29th February. The loss is due to the continued appreciation of the NT dollar against the US dollar.
Related stories to: NT$4 billion in losses for CHT due to poorly timed contract
Add to Bookmarks:
Latest News:
- Telephonetics VIP partners Lagan on government call technology
- Ericsson Q2 profits fall 70%
- Arima and Elcoteq suspend merger talks
- iPlayer-via-cable huge hit for Virgin Media
- BT’s fibre optic plans anger competitors
- Symena and Vienna University research LTE
- ECI Will Build WiMAX Network in Denmark
- BT launches new Home Hub
- World recession hits telecoms
- 3G iPhone: cheap version of original
Previous: « Bangor University research could revolutionise broadband
Next: Another mobile-TV PND from Garmin »
Visited 98 times, 1 so far today
