Currency risk management for global businesses
Currency management is the essential process of implementing strategies to manage foreign exchange risk. Using carefully implemented currency management strategies, global businesses are better able to limit their exposure to foreign exchange (FX) fluctuations and protect revenues and profit margins.
The importance of currency risk management for businesses
Well-executed currency management allows businesses operating globally to leverage growth opportunities associated with trading in foreign currencies.
With a currency management strategy, you can minimise FX risk, manage currency exposure and increase efficiencies through foreign exchange and currency hedging strategies.
Currency exposure can affect global businesses in both short and long-term ways, including the impact on their financial position and the impact of currency fluctuation on their market value.
The benefits of a currency risk management strategy
With a currency management strategy in place, your business will experience many potential benefits, including:
● The ability to forecast and budget in line with your long-term financial goals
● A greater understanding of your cash flow and profit margins
● Reduced volatility in cross-border payments
● Lowered risk of exposure to short-term exchange rate hikes.
Why choose foreign exchange specialist services?
The better your understanding of foreign exchange, the better you can manage any foreign exchange risks associated with your business operations. That’s why our dedicated Halo Financial team is here to help your business utilise better risk management.
Bringing a personal touch to competitive markets
The foreign exchange market is becoming increasingly impersonal. This highly automated and overcrowded space is fuelled by companies seeking profit-led efficiencies over long-term value. At Halo Financial, we provide our clients with tailored solutions that conquer complex scenarios.
Removing stress around currency management
It’s not just our expert knowledge that empowers our clients, but our human approach to currency management.
We collaborate with our clients to build strong relationships and understand the best outcomes for their business, endeavouring to consistently deliver their foreign exchange goals.
Award-winning client service
This approach is what generates one of the leading rates of repeat business in the foreign exchange industry. Placing our clients at the centre of our services has awarded us industry-wide recognition, including:
● Feefo Platinum Merchant Status for five years and counting
● Best Customer Focus in the Best Business Awards
● OPP Gold Awards for Best Supporting Service – twice
● Commended in the Best Money Transfer Provider category in Consumer Moneyfacts Awards five years in a row
● Shortlisted for Best Money Transfer Provider in the new British Bank Awards.
Better currency management with Halo Financial’s strategies
Spot contracts
Spot contracts utilise the present exchange rate to make immediate currency transfers, with the expert guidance of a currency specialist to help find a convenient time to trade to make the most of the current exchange rate.
Spot exchange rates are practical for clients that need to make a quick overseas payment or at a specific time, with an immediate settlement date or within two business days of the date on which the trade was agreed.
Forward trades
A forward trade allows a client to specify the exchange of a sum of money at a fixed exchange rate and lock in a predetermined exchange rate on a certain date in the future.
This is ideal for clients looking to protect their exchanges for a longer period of time, as the forward rate can be fixed for up to two years in the future.
Automated orders: limit and stop loss
Using an automated order, a client can book a market position for several days.
Entering into a stop loss, the client can also manage their FX risk by locking in an exchange rate for a predetermined amount of currency. This allows the client to protect themselves against any potential downside in currency movements.
A limit order enables the client to target a predetermined exchange rate, which goes through automatically if achieved and leverages more currency.
Take control of your currency management strategy with Halo Financial’s services
Our solutions are designed to mitigate foreign exchange risk for global businesses, allowing your currency transfers to achieve more. With a currency specialist dedicated to developing your bespoke currency management strategy, you can make smarter currency transfers and take advantage of currency volatility.
Register for a Halo business account today to begin building a partnership that expertly leverages global currency opportunities for your business.