By Corpay Cross-Border Solutions
If your company is weighing up the pros and cons of foreign exchange hedging, take a look at our five-point checklist…
Five key questions to ask if your business is keen to decide whether foreign exchange hedging might be a good option:
Q1. What do I hope to achieve from my currency hedging strategy?
As with any strategy you need to have a clearly defined goal. To a certain extent, your goal will help you determine whether to hedge and which may be the most suitable foreign exchange (FX) hedging products to meet your needs.
As the currency market has been volatile in recent times, your goal may simply be to protect your business from foreign exchange losses. Adverse currency market movements can have a direct impact on your company’s profitability. In this scenario you might consider using a foreign exchange forward contract. This allows you to fix the FX rate for a set time period.
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To get a free consultation to discuss your foreign exchange or hedging needs please contact:
Danielle Orcutt, National Account Manager, +1-929-504-8791 danielle.orcutt@corpay.com