Currency Risk Management: Managing Impact and Rapid Volatility
Currency Risk Management Policy Economic Context and Currency Risk Management The dynamic forex market and global economic uncertainties demand heightened vigilance. Factors such as the end of President Biden’s term, central banks’ monetary policies addressing inflation, and geopolitical tensions surrounding the Ukraine war and the Middle East create unpredictable conditions for international trade. As a […]
Currency risk: How to take volatility into account in your management?
Volatility represents the change in the value of a currency and is of interest to us to the extent that it affects the company’s international operations.
Build your tool to compare the performance of different markets during budget planning
In the second article on volatility [1], we discussed how to compare different international transactions on an equivalent basis to account for the impact differential on profitability generated by currencies.
Is a coverage ratio of 70% too much or insufficient?
Your company’s currency risk management approach begins with verbalizing your attitude toward risk. Here are 2 questions to start your reflection with…
5 simple ideas to improve your foreign exchange risk management
Economies around the world continue to be affected by events in Ukraine and the sanctions imposed on Russia.
Are you confident that your existing currency risk management strategy will be successful if reality differs from your expectations?
Comparing indicators such as profitability due to currency movements, based on 4 simulated situations, can ensure that the strategy in place will continue to be effective.
Two markets, one measure? How to assess the hidden currency risk in the budget?
In a previous article, we discussed the use of volatility as a measure of uncertainty, the factors that influence it, and its impacts on SMEs.
Resilience in times of crisis : Asking yourself the right questions
The Covid-19 pandemic and the accompanying sanitary measures have shaken our daily lives and the way we do business in an unprecedented way.
Omicron, inflation, political uncertainty, market volatility, supply chain
The past two decades have taken place against a backdrop of low and stable inflation in many developed markets as opposed to the periods of high inflation of the 1970s and 1980s.
