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FX Exposure Calculator
FX Exposure Calculator
Understand how currency movements could affect your international payments and receipts.
Foreign exchange exposure can arise whenever a business expects to pay or receive money in a currency different from its reporting or operating currency.
Use the Currency Hedger FX Exposure Calculator to illustrate how a change in the exchange rate could affect the value of a future currency exposure.
Calculate your potential currency exposure.
Enter your exposure, current exchange rate and an illustrative future exchange rate to see how the currency movement could affect its value.
Your FX exposure will appear here.
Enter your exposure and exchange-rate assumptions to calculate the illustrative currency impact.
Where does foreign exchange exposure come from?
FX exposure exists whenever changes in exchange rates can affect the value of a future payment, receipt, asset, liability or business cash flow.
Foreign Currency Payables
A business purchasing goods, services or assets overseas may need to buy foreign currency at a future date. A movement in the exchange rate can change the eventual cost in the business's home currency.
Foreign Currency Receivables
Exporters and international businesses receiving foreign currency may see the home-currency value of those receipts change as exchange rates move.
International Investments
Overseas acquisitions, investments and assets can create currency exposure when their underlying value is denominated in another currency.
International Operations
Businesses operating across multiple countries may have recurring currency exposure through payroll, suppliers, operating expenses and revenues.
A simple example of FX exposure.
Imagine a company expects to pay €100,000 to an overseas supplier in three months.
If the company's reporting currency is US dollars, the eventual USD cost of that payment will depend on the EUR/USD exchange rate when the transaction is completed.
If EUR/USD moves significantly before the payment date, the company's actual cost can differ from the amount originally budgeted.
Illustrative example only. Actual transaction costs may differ and future exchange rates cannot be predicted with certainty.
Currency movements can influence the economics of your business.
FX risk can affect more than the final payment. For internationally active businesses it can influence margins, pricing, budgets and cash-flow visibility.
Identifying your exposure is only the first step.
Once a business understands where its currency exposure comes from, it can consider whether managing that exposure is appropriate.
Depending on the circumstances, businesses may consider solutions such as spot contracts, forward contracts, FX options or other currency risk-management strategies.
EXPLORE CURRENCY HEDGING →Understand the exposure.
Consider the potential impact.
Consider appropriate solutions.
Implement an appropriate FX strategy.
Continue exploring your FX position.
Use Currency Hedger's other FX tools to explore currency conversion, forward contracts and hedging strategies.
Currency Converter
Convert currencies and explore current FX values.
USE CONVERTER → 02Forward Contract Calculator
Explore the potential value of a forward FX requirement.
USE CALCULATOR → 03FX Hedging Calculator
Explore the potential impact of an illustrative hedging strategy.
USE CALCULATOR →Know your exposure. Then decide how to manage it.
If your business has international payments, overseas revenues or ongoing currency exposure, speak to Currency Hedger about your FX requirements.
TALK TO AN FX SPECIALIST