---
title: Corridor Invoicing: Real Hedging in International Trade
url: https://www.ml-quant.com/papers/repec/iza-izadps-dp18943/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-23
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:iza:izadps:dp18943
source_url: https://econpapers.repec.org/RePEc:iza:izadps:dp18943
featured: 2026-10-23
citations: unknown
topic: Trading, Microstructure & Execution
---


# Corridor Invoicing: Real Hedging in International Trade

Italian customs data shows firms match import and export invoicing currencies by country to reduce profit volatility from exchange-rate movements in real transactions.

- Source: https://econpapers.repec.org/RePEc:iza:izadps:dp18943
- Identifier: RePEc:iza:izadps:dp18943
- Released: 2026-10-13
- First featured: Quant Letter No. 136 (2026-10-23): https://www.ml-quant.com/issues/2026-10-23/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Trading, Microstructure & Execution
- Authors: Brancati, Emanuele, Brianti, Marco, Nosal, Jaromir, Schiantarelli, Fabio

## Related

- [Optimal Design of Automated Market Makers on Decentralized Exchanges](https://www.ml-quant.com/papers/arxiv/2404.13291/): The study presents a model for ideal liquidity provision in automated market makers, indicating that exchange rate volatility increases the optimal transaction fee and the pricing formula is tied to the performance of underlying assets.
- [The QLBS Model Within the Presence of Feedback Loops Through the Impacts of a Large Trader](https://www.ml-quant.com/papers/arxiv/2311.06790/): The QLBS model is expanded to include a large trader's impact on exchange rates and contingent claim prices, using reinforcement learning to find an optimal hedging strategy, reducing transaction costs and aligning with the trader's fair price.
- [How Much of the Edge Is Luck? Bootstrap Overfitting Diagnostics and Portfolio Synthesis Across a Decade of FX Anomalies The Deflated Alpha Series](https://www.ml-quant.com/papers/ssrn/7630778/): Resampling bootstrap of ten walk-forward validated FX strategies places their median expectancy at the 77th percentile of its own distribution, indicating modest optimization bias.
- [An Empty Region of Technical Strategy Space: 18,630 Pre-Registered Variants Across Cryptocurrency and FX](https://www.ml-quant.com/papers/ssrn/7594361/): A blockchain-verified sweep of 18,630 cryptocurrency and FX trading variants found no strategies exceeding a Deflated Sharpe of 0.95, with median detectable Sharpe of 3.49 and collective underperformance versus random selection.
- [The Foreign Currency Risk of International Remittances](https://www.ml-quant.com/papers/ssrn/7600423/): Exchange-rate hedging costs explain about 16 percent of remittance fees, especially in thin currency markets, and induce operators to adjust variable fees while raising exit risk.
- [Corridor Invoicing: Real Hedging in International Trade Institutions](https://www.ml-quant.com/papers/repec/bol-bodewp-wp1232/): Italian trade data reveals firms use invoicing currency bilaterally and by country to hedge country-specific risk, not just currency risk, reducing profit variance beyond net exposure.