major currencies can fluctuate between 5% to 15% annually, with some experiencing even higher volatility during periods of economic instability. This presents risk to businesses.
Transaction Risk: Changes in exchange rate between the time a transaction is initiated and settled impacts the value of cash flows associated with that transaction wether it is sales, purchases, or investment.
Transalation risk: This occurs when a firm's equities, assets, liabilities, or income are denominated in a foreign currency and any fluctuation in the exchange rate will cause a change in the value of the assets, liabilities, or income, when translated into the reporting currency of the company.
Currency movements can have a devastating impact on a business. Managing currency risk can be key to a business surviving and thriving.
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A currency forward is a binding contract in the foreign exchange (FX) market that locks in the exchange rate for the purchase or sale of a currency on a future date.
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Micro-hedging is a currency risk management strategy using automation that consists of hedging each transaction as it occurs.
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We offer a solution that utilises sophisticated analytics to identify Value at Risk for a range of time periods and confidence intervals, aiding you in managing FX volatility on your balance sheet.
Put our knowledge, payment automation technology, currency risk management solutions, global reach and commitment to our clients to work for your business.