Currency Hedging

CURRENCY HEDGER โ€ข FX RISK MANAGEMENT

Hedging

Turn currency uncertainty into a managed business decision.

Foreign exchange markets move every day. For businesses operating internationally, those movements can affect revenues, costs, margins, cash flow and investment returns.

Currency Hedger helps businesses and investors understand their exposure and develop practical strategies to manage the impact of currency movements.

THE FX EXPOSURE
INTERNATIONAL BUSINESS Revenue โ€ข Costs โ€ข Payments
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CURRENCY EXPOSURE Exchange-rate uncertainty
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HEDGING STRATEGY Greater certainty โ€ข Better planning
WHAT IS HEDGING?

Hedging is about managing risk โ€” not predicting the market.

Currency hedging is a financial risk-management strategy used to reduce the potential impact of adverse exchange-rate movements.

Rather than relying on where a currency might move tomorrow, a business can use appropriate FX instruments and strategies to create greater certainty around future currency requirements.

Protect Margins and commercial value
Plan Future international cash flows
Reduce Exposure to currency volatility
Improve Financial predictability
WHY HEDGE?

Currency movements can affect your business long before the money changes hands.

A currency exposure does not have to be large to affect commercial decisions. The longer an exposure remains unmanaged, the greater the uncertainty surrounding its eventual value.

01

Protect Profit Margins

Exchange-rate movements can change the underlying cost of international purchases and reduce expected margins.

02

Improve Cash-Flow Planning

Greater certainty around future currency requirements can make budgeting and financial planning easier.

03

Protect Overseas Revenue

International revenues can change in home-currency terms when exchange rates move.

04

Manage Supplier Costs

Businesses purchasing goods or services overseas may face increased costs when currencies move against them.

05

Plan International Expansion

Entering new markets introduces new currency exposures. Hedging can form part of a broader international risk strategy.

06

Reduce Uncertainty

Hedging can help businesses replace some uncertainty with a defined and considered FX strategy.

THE HEDGING PROCESS

A structured approach to FX risk.

Effective hedging starts with understanding the exposure, not simply choosing a financial instrument.

01

Identify

Understand where currency exposure exists across your business.

02

Assess

Consider the size, timing and potential impact of the exposure.

03

Strategise

Determine an appropriate approach based on the business requirement and risk tolerance.

04

Execute

Use the appropriate FX solution to manage the identified exposure.

05

Monitor

Review exposures as your business, markets and requirements change.

WHERE DOES FX RISK COME FROM?

Your currency exposure may be hiding in everyday business activity.

FX risk can arise from much more than a single international payment. It can be embedded throughout a company's supply chain, revenue model, investment strategy and international operations.

International Suppliers Purchasing goods or services in another currency.
Overseas Customers Receiving revenue in a currency different from your reporting currency.
International Investments Acquiring or holding assets denominated in foreign currencies.
Global Operations Paying employees, suppliers or operating costs across multiple markets.
Future Commitments Known payments or receipts that will occur at a future date.
UNDERSTAND YOUR CURRENCY EXPOSURE

Know the currencies behind your international business.

Currency Hedger provides access to a broad range of currency markets, including major, cross and exotic currency pairs.

CURRENCY HEDGER โ€ข FX RISK MANAGEMENT

Don't leave your currency exposure to chance.

Talk to Currency Hedger about your international currency requirements and explore an FX strategy designed around your business.

TALK TO AN FX SPECIALIST