Currency Volatility: Measures to Take in Times of Crisis
With the second wave of COVID-19 raging, lockdown measures resuming, and uncertainty surrounding the global economic recovery, we can anticipate that trading ranges, as reflected by the extent of risk and currency volatility, will be higher than their historical averages. currency volatility, will be higher than their historical averages.
This article follows the publication Crisis and Exchange Rate Risk: Coronavirus, What to Do? It offers you measures to better control your profitability in a context of market volatility.
Controlling Profitability in a Context of Currency Volatility
These measures reduce the vulnerability of your business model to short-term exchange rate trends and, in the long term, smooth their impacts. However, the flexibility of your operations is maintained in order to commercially capitalize on favorable currency movements.
See also: Currency Volatility: Understanding the Scope of Exchange Rate Risk
For more information on financial stability in uncertain times, see this Bank of Canada article: Financial Stability in Uncertain Times
International Markets: A World of Opportunities
Growing your business abroad can drive growth — but it also comes with risks for SMEs. Tracking the ongoing impact of exchange rates on forecasted performance is complex.
D-Risk FX provides SMEs with detailed performance, risk, and stress-testing analyses — by market, by currency, and by business line — enabling a tailored hedging strategy and real-time monitoring of expected performance.
Gain autonomy, automate your processes, and approach foreign markets with the confidence of a clear currency risk strategy and the tracking tools to support your ambitions.