This paper examines the use of currency derivatives and/or currency borrowing in a sample of 277 non financial firms taken from the UK actuaries all share index that were reporting continual data on DATASTREAM for the year 1995-2001. The results of the univariate and multivariate tests indicate those UK firms with compensation packages that favour share options are less likely to hedge. Furthermore firms with low profitability, high growth opportunities, and higher tax liabilities are also more likely to use currency derivatives. In conclusion, the variables deemed important determinants of hedging using derivatives appear to have little to do with the decision to raise currency debt.