How much do exchange rate movements affect your business?
Possibly, more than you imagine.
From the pound’s weakness last March to its recent, relative
highs, the GBP/USD rate has moved almost 20%.
Movements of that scale can have a serious impact on your
business.
Whether you sell your creative services around the world,
import materials and components from China or – like a superyacht – operate an
internationally mobile, multi-million-dollar business, you are exposed to the
risk of foreign exchange rate movements.
If you manage music streaming revenues and royalties, on-location
film crew or international jet charter then, in a volatile, globalised economy,
not having a currency strategy can be a big gamble.
That’s why we’ve written our latest guide, How To Develop Your
Currency Strategy.
In this free, 28-page guide, we describe the different types
of currency risk that your business may be exposed to, and we take you through
the steps to develop your own currency strategy:
1.
Understanding how currency affects your business.
The importance of your budget exchange rate
Measuring the size of your business exposure
The importance of sensitivity analyses
2.
Assessing your business’s attitude and appetite
for risk.
3.
Developing an appropriate strategy.
Establishing your currency goals
Understanding exchange rate forecasts
Considering available tools
Working with currency forward trades
4.
The importance of continually reviewing and
refining your strategy.
The guide includes examples, voices of experience and definitions
of the most common currency terms, like spot trade, forward contract and limit
order. There’s an introduction to our recently expanded currency desk team,
too.
If you don’t yet have a strategy for managing your foreign
exchange and currency risk, our guide could be a good place to start.
If your existing strategy needs a review (for example, when
did you last review your budget exchange rate?) then you’ll find some useful
pointers.
