FX hedging strategies to remove the risks faced by your business

4 Steps to a Robust FX Hedging Strategy

1

Clearly identify the headwinds facing your business

2

Understand the risk and its potential impact on your business

3

Implement risk management strategies utilise spot, forwards or option contracts specifically designed for your needs

4

Monitor, review and improve – continuously looking to provide a better service

If activities within your business have exposure to foreign currencies there is an inherent risk involved. It is essential that your business has a robust FX strategy in place to mitigate those risks and where appropriate take advantage of prevailing exchange rates. The risks can affect the financial performance of your business and could have a bearing on your profitability.

At Treasury First, we can provide a comprehensive treasury management service that will include evaluating potential risks, such as economic, business, transactional, currency, and payables and receivables. Our risk management strategies will look to utilise spot, forwards, or option contracts or a combination to create structured products specifically designed for your needs.

Every organisation is different, and at Treasury First we take the time to understand your business needs and assess the FX risks to your operations. We will ensure your risks are minimised and that your profitability is not compromised. We aim to ensure that the success of your business will not be negatively affected by fluctuating exchange rates.

We adopt a four-step approach in assessing your business. This 4-step systematic approach ensures you benefit from the most suitable foreign exchange strategy to suit your needs.

You may have previously used your bank for foreign exchange services, however, now might be the right time to use a specialist currency provider instead, especially if foreign exchange is prominent in your business. With a specialist provider, you will not only benefit from the best rates, but you will have tailored support to suit your needs. You might also benefit from additional services like an unsecured credit facility.

Treasury First would be delighted to provide a personalized and complimentary FX appraisal of your existing process in order to provide a fresh outlook and identify any areas that can be made more efficient. If you'd like to set up a time for an evaluative conversation, please leave your contact information below.

Available Products

Product Tenor Guaranteed Hedge at expiry Upside Potential

Spot FX

N/A  

Y  

N  

Dual Currency Deposit

24m 

Y  

Vanilla Option

24m 

Participating Forward

24m 

Participating Forward Extra

12-18m 

FX Collar Option

24m 

Ratio Collar Option

24m 

Vanilla Forward

24m 

Non-Deliverable Forward

12m 

Swaps

24m 

Non-Deliverable Swaps

12m 

Forward Extra

12-18m 

Ratio Forward Extra

12-18m 

Window Forward Extra

12-18m 

Window Ratio Forward Extra

12-18m 

Dynamic Forward Extra

12-18m 

Knock-Out Forward

12-18m 

Knock-Out Ratio Forward

12-18m 

Knock-Out Ratio Forward Extra

12-18m 

Knock-Out Forward Extra

12-18m 

Range Enhancer

12-18m 

Ratio Forward

12-18m 

Tracking Forward

12-18m 

Bonus Forward

12-18m 

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