Creating hedge relation between forward contract and money market contract

Hi ,

We are entering into forward contract (product type 60B) to hedge the foreign currency loan we have created under interest rate instrument. I want to link these two transactions by creating hedging relation through TCode: THMEX.

Here while uploading loan exposure through TCode: THMMM it requires hedge plan to be created under Risk Category: Interest Rate Risk. However while creating hedge relation with forwad contract it gives error ' Derivative XXX in company code 1000 cannot be used to hedge interest rate
risk'.

If hedge plan is created under Risk Category: ' Foreign Exchange Risk', while uploading MM exposure thru TCode: THMMM it gives error 'Plan XXXX does not belong to risk category 02 (Interest Rate Risk).

Please provide valuable inputs. In the end I want to provide linkage between forward contract and loan contract.

Regards

Tushar

Message was edited by: Tushar Poojary