Foreign Exchange Risks: Find bespoke strategies to successfully manage your FX exposure.

When your business involves trading overseas, financial decisions become more complex. Deciding when to exchange or transfer funds can be tricky as you need manage risk associated with foreign currencies fluctuations. After all you want to ensure you gain cost savings and maximum profits from your business ventures.

Watching currency markets is both time consuming and confusing. Some currencies are more volatile than others because of their inflationary or unstable economies. The current economic climate is also impacting more stable currencies such as the euro, the US dollar and sterling. However, taking charge of foreign exchange risks presents you with the opportunity to look at your international payment costs and find ways to reduce them.

Our dedicated team not only provides you with market insight but also work with you to develop a strategy to reduce losses related to foreign currency volatility.   

It's possible to reduce the risk through various hedging instruments available with us:

• Spot Contract, the quickest and the most popular foreign exchange transaction. Simply it enables you to buy the currency at today’s live market rate, whenever you need it.
   
• Forward Contract, enables you to effectively fix the currency at a favourable exchange rate today for a transaction that will take place up to two years in the future. This type of transaction will give you piece of mind that the cost of your overseas’ purchase won’t increase if the market moves in a positive direction.
   
• Limit Order, when the currency market is moving in a favourable direction, you can maximise the rate you receive by using a Limit Order. Just specify the exchange rate you are hoping to achieve and your currency will automatically be purchased if the market reaches your desired level.
   

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Bear in mind that exchange rates could have an effect on your business' competitiveness even if you don't trade overseas. When a country's currency loses value against the pound, imports from that country into the UK become cheaper, so you may have to respond to aggressive pricing from competitors who source from that country.

Similarly, if a country's currency gains value against sterling, UK exports to that country become cheaper.

For further advice speak to one of our specialist currency consultants today, on hand to help with any of your queries on +44 (0)20 7373 2686 , Click here and we’ll call you back or by email to info@currencychange.com