In FX risk management, a budget period makes reference to the broader financial planning timeframe during which exchange rates, pricing assumptions, financial targets, and overall currency risk management strategies are established and maintained. Budget periods typically align with annual planning cycles and serve as the foundational framework that encompasses multiple shorter campaign periods.

During the budget period, organisations define their budget rates, apply appropriate markups to spot rates, and establish hedging objectives that will govern subsequent campaign periods. The budget period provides the strategic context within which individual campaign periods operate, ensuring consistency in pricing methodology and risk management approach across all operational cycles within the planning horizon.

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