Why might my business need an FX risk management strategy?
A risk management strategy could help you limit your currency exposure and protect your profits.
All major currencies—whether due to politics, economics or other external factors—will fluctuate against each other. Whether your organisation is an importer of goods from abroad, regularly receives payment in foreign currencies or relies on paying international staff in local currency, international payments increase your exposure to ever-fluctuating exchange rates.
These sudden exchange rate shifts can affect the value you receive when exchanging currency creating financial risk and making it difficult to forecast costs and income.