FOREIGN EXCHANGE RISK MANAGEMENT FOR ENTREPRENEURS
As a result of the increasing globalization, more companies have an international footprint. Doing business internationally also means international cash flows. If your services or products are sold or purchased in currencies which are not your base currency you run foreign exchange (FX) risk as a result of fluctuating exchange rates. Due to this movement, your products or services can be more expensive or cheaper in the country where it's offered. Cheaper products will have a positive impact on sales but more expensive products are usually not desirable.
Our starting point for FX risk management is that you as an international company should not speculate with future returns. It is important that you cover risks and protect future income. That provides certainty.
Multinationals often have access to financial markets through a treasury team that covers financial risks. Smaller international companies don't have that coverage. Most corporates are forced to work with standard solutions like e-commerce systems. Although these systems are continuously improved, they are only tools and don’t look at the market.
2FX Treasury looks at the context of the market. We help companies to manage their foreign currency exposure in the short, medium and long term and makes sure it matches their risk profile. 2FX Treasury can provide the solutions you need to manage your foreign exchange risk.