“We don’t buy currency forward, as we don’t speculate.”
The old adage – ‘if I had a pound’, comes to mind.
To do nothing is to speculate, surely? With the world’s press sensationalising financial meltdown due to the current pandemic, not to mention the fiscal impact due to the mountain of debt being created by the funding needs of each country, any level of certainty a business can get currently must be worth its weight in gold?
If I was the Financial officer of a business with outflows in different currencies, then right now, when not only can I not see the wood for the trees, but the ability to predict market movement against economic data is virtually non-existent – give me a hedging policy that can stabilise my effective rate for my currency payments and I will bite your arm off.
The ability to have real-time visibility and get some semblance of control, so that I can report to the board our exact position and impact that current market movement is having on the bottom line, is vital during such as uncertain times as these.
To be able to stress test worse case scenarios and measure impact against potential real-world outcomes would be very useful.
Up until now there hasn’t been an available tool to do all of this, unless you are the founding developer of Excel. Marrying up data led decisions with opinion-based theory, gives you the peace of mind to know that the uncertainty created by having to pull the trigger ‘at the right time’, is eliminated.
If any of the above rings true, then reach out to find out more about what CentralFX are doing to help UK SME/PLC navigate through these uncertain times and most importantly – create peace of mind.
Central FX is a leading foreign exchange service protecting corporate and private clients since 2008. The benefits of overseas trade can be huge. We help you to get it right the first time and every time.
Get in touch with one of our dedicated FX specialists to assess your currency risk and find out how we can protect your bottom line.