There are many reasons organisations require the use of international payments. You may be an importer of goods from overseas or supply services to other companies abroad. All will result in currency transfers and subsequently exposure to the volatility of the foreign exchange markets.
The cost of overheads within a business can be securely budgeted for when paying for these in the company’s home currency. However, if these transactions need to be completed via international payments and in a currency, which is not where the company originates it automatically opens up the risk of fluctuation in currency price. This will make it more difficult to budget for and accurately estimate your income and expenditure.
Using a hedging strategy will safeguard your company from potential losses by looking to secure a more favourable currency rate over a period of time.
Another advantage of a hedging strategy is it takes the stress out of those companies who do not have the time to monitor the foreign exchange market and prices consistently. By locking in a hedging strategy, Currency Online Group will then ensure the plan is delivered on time and in line with what is agreed with the client.