Manage your FX rate risks
Foreign exchange rate fluctuations have a direct impact on the profitability of companies that engage on foreign trade.
An FX risk arises if the exchange rate of a future foreign exchange transaction is not known for certain. What makes the situation more difficult is that exchange rates fluctuate strongly and the movements are difficult to forecast. A lot can happen between the time your company concludes an agreement with a foreign partner and the time when the payment is made to your account. However, we offer many hedging products that allow you to mitigate your business’s FX risks.
Risk management should aim to make business more predictable, reducing fluctuations in cash flows and profits. FX risk management helps your company with budgeting and allows it to achieve its estimated margins.
Together we can tailor the most suitable solution for managing your company’s currency flows. You can start your search for the optimal alternative by reading the overview on various FX strategies and their effects.
You should also remember, that having no strategy may also be a conscious decision. But if you decide against hedging your FX risks, you are effectively taking a view on how exchange rates will move in the future. Therefore you are accepting the risk of your company’s result turning negative, possibly overnight.
Of course, exchange rates may also move favourably for your company, but the problem is that their overall direction will become clear once it is too late. We offer various hedging products that give you the best of both worlds. For example, you can use options to hedge against unfavourable exchange rate changes and benefit from favourable ones.