3 crucial FX rates

When managing FX issues within companies, there are three very important rates which need to be understood and considered. For those that don’t grasp their meaning, or their contribution to the bigger picture, it can mean increased confusion, higher costs and reduced efficiencies...

FX policy guidelines

This document is intended to help a company write its FX Risk Management Policy. Benefits of an established policy include senior management buy-in, clear guidelines to avoid misunderstandings, and fair evaluation of Treasury personnel performance. The main objective is  to put in place an auditable framework that addresses company...

Key FX hedging metrics

For most company managers, when compared to the more easily understood production and profitable sale of goods, FX risk management has an image problem. It is more theoretical, more esoteric and lacks the glamour of sales. It originates from the concept of the prevention of loss, rather the more alluring area of revenue generation...

Key FX hedging metrics and benchmarks

For most company managers, when compared to the more easily understood production and profitable sale of goods, FX risk management has an image problem. It is more theoretical, more esoteric and lacks the glamour of sales. It originates from the concept of the prevention of loss, rather the more alluring area of revenue generation...

Strategic Benefits of Hedging

Most CFOs and Treasurers are familiar with the financial benefits of hedging FX exposures, and hedging FX is a widespread practice (93% of the Fortune 500 hedge FX). However, not much thought is given to the strategic benefits of hedging. This paper will review some of the more important effects hedging has at a strategic level, and the high added value Treasury hedging activities can have on the corporation as a whole. These include increased pricing...

Understanding the strategic benefits of hedging

The benefits of hedging FX are well known by financial officers, but less thought is given to why strategically it is a good practice. In short, hedging activities can add significant value to a company’s operation. It can increase pricing stability, enhance a company’s valuation, and improve the ability to raise both debt and equity capital. It can also reduce taxation, or lessen uncertainty...