Hedges can break, and must always be limited. Trade counterparties don't need to hedge for years. They need to hedge over a production cycle. 1/

Counterparties in FX hedges for hub-and-spoke trade are hub-country institutions, who might be forced to provide hub-currency on disadvantageous terms. *In extremis* they can be bailed out by hub country central banks. 2/

(To receivers of hub currency, there is the risk of its decline relative to local, the goal is to insure against local currency strength. The depth of those markets are largely up to local currency markets. But note that the current practice of reserve currency accumulation doesn't hedge that.) /fin