
Hedged Bets, Heavy Fallout: The Lufthansa Currency Gamble
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What happens when a CEO bets half a billion dollars on a falling dollar—and gets it right—but still ends up in political hot water?
In this gripping episode of Management Unplugged by GR, we unpack the high-stakes currency gamble that put Lufthansa’s Chairman, Heinz Ruhnau, under fire. In 1985, faced with a skyrocketing U.S. dollar and a $500 million deal with Boeing, Ruhnau had five choices to manage the risk. He chose the middle path—part hedged, part exposed.
The dollar did fall. His prediction was right. But the fallout? Brutal.
We break down the decision-making puzzle, the financial strategies he didn’t choose, and the hidden cost of being half right. Through this real-life case, you’ll explore what separates hedging from speculation, how financial instruments can make or break a leader, and why the smartest move on paper sometimes fails in politics.
If you’ve ever wondered how CFOs sleep at night—or how a decision made in a boardroom can spiral into national headlines—this episode is for you.