Mexico has begun a massive yearly oil-hedging program.

The program is called hacienda Hedge and is the largest sovereign oil hedge in the world – usually costing around $1B. It’s the country’s approach to ensuring 2023 oil exports against a price downturn.

The hedge program covers the year’s first half and would protect Mexico’s revenues if oil falls below $75 a barrel.

The goal is to protect against falling prices, but it can also yield massive returns. In 2020, Mexico earned $2.38B when oil prices crashed. In 2015, the country earned $6B.