Put Confidence in Your FX Strategy

Put Confidence in Your FX Strategy

Remember the story of the three little pigs? If you’ve ever leaned against a brick wall, you know the unsung hero of the story was mortar – the cement that connects every brick so the wall stays intact, and serves its purpose.

Our title, Put Confidence in Your FX Strategy, asserts that the way to build a strategy is to include confidence among the materials used, like the mortar in a brick house.

Measuring FX Risk: Crises with Confidence

Measuring FX Risk: Crises with Confidence

Corporate treasurers do more than ever before to identify and mitigate risk and to position their companies to weather market crises with confidence. According to Deloitte, 85% of companies are measuring their sensitivity to market risk, but a much smaller portion regularly assess the probability of their risk.

How to Use Probability to Manage FX Risk

How to Use Probability to Manage FX Risk

In our last article, we identified a clear risk management objective: certainty. Risk management is really about understanding and managing uncertainty to create more certainty.

They say, “what gets measured gets managed.” So, if you’re not measuring your FX risk, you might not be managing it – even if you think you are.

FX Risk Management Objectives

FX Risk Management Objectives

This article kicks off a new series of posts that will help treasury professionals understand conventional FX risk management practices and how they fit into a successful strategy.

There’s no better way to begin than to ask ourselves, “why do companies bother to use any of these conventional practices?”

How Tesla and Other Manufacturers Are Impacted by Currency Risk - and How They Manage It

How Tesla and Other Manufacturers Are Impacted by Currency Risk - and How They Manage It

When supply chains stretch across borders, currency risk becomes a key consideration. Currency risk can be a roller coaster ride for even the largest global manufacturers.

Exhibit "A" could well be Tesla, which has seen its financial fortunes zig and zag due to currency swings in recent years.

The Biggest Currency Risk Management Mistakes Companies Make

The Biggest Currency Risk Management Mistakes Companies Make

Corporate financial history is replete with examples of currency risk and trading management decisions that have backfired on companies.

Consider Toshihide Iguchi, a Japanese banking executive who turned a $70,000 in U.S. debt into a substantially larger debt of $1.1 billion, after making a bet on the U.S. fixed income market in 1983.

How Tech Startups Benefit from Rich FX Data (and why it's dangerous to go without)

How Tech Startups Benefit from Rich FX Data (and why it's dangerous to go without)

There are now many tech products that rely on foreign exchange data for accurate pricing and financial tools and for exchange rate conversions between currencies from around the globe that are updated in real-time.

The need among tech startups to optimize their FX management is clear, and to do so necessitates the access to, and correct use of, powerful, reliable data.

With Interest Rates on the Rise, What Is the Impact on Currencies, Taxes and Foreign Investment?

With Interest Rates on the Rise, What Is the Impact on Currencies, Taxes and Foreign Investment?

With renewed talk on continued U.S. interest rate hikes, corporate financial offers need to get a grip on the ensuing impact of higher rates on the economy, currencies, and business investment.

One thing is for sure—the Federal Reserve is pointing directly to higher rates.

Your Brief 3-step Plan: Building an Expert FX Strategy That Truly Offsets Risk

Your Brief 3-step Plan: Building an Expert FX Strategy That Truly Offsets Risk

A high amount of SMEs with considerable operations in foreign currencies don't protect themselves against FX risk. These companies, many of which record revenues of around $200 million per year, simply don't approach FX management as there is no specialist in-house FX risk manager. Instead, they expose themselves to the whims of the currency market.

October Alert: Global Tax Laws Adjusting in North America and the Eurozone

October Alert: Global Tax Laws Adjusting in North America and the Eurozone

A raft of new geopolitical events, like, among other things, the U.S. tax law reform, a NAFTA exodus, and a Brexit reboot in Europe, could be a taxation game-changer for companies doing business overseas. That's especially the case as a new year beckons.

Overall, the global corporate tax landscape has changed dramatically in the aftermath of U.S. tax reform passed and signed into law at the end of 2017, and as its enactment creates ripples across the globe, even in late 2018.

For CFOs, These Are the Big Takeaways on New U.S., Canada and Mexico Trade Agreement

For CFOs, These Are the Big Takeaways on New U.S., Canada and Mexico Trade Agreement

With NAFTA on the way out after months of intense negotiations, the new United States-Mexico-Canada Agreement (USMCA) trade agreement is coming to fruition soon in advance of a country-by-country vote in a few weeks.

In this article, we focus on the key takeaways for CFOs to get up to speed on the economic impacts for consumers and businesses, the major financial points, and geopolitical implications of the new USMCA agreement.

Treasury Insights 2019: Currency Analytics and FX Budgeting

Treasury Insights 2019: Currency Analytics and FX Budgeting

Treasury departments preparing for 2019 can learn from some key lessons by looking back at 2018 currency movements and wider economic developments.

In this article, we focus on six separate focus areas to help your treasury department hit the ground running in 2019 with a value-added foreign exchange and currency analytics strategy in place.

Historic CFO Blunders and How to Learn from Them

Historic CFO Blunders and How to Learn from Them

There are mistakes and then there are mistakes. From SMBs to enterprise-sized companies, financial blunders at the executive level can not only damage businesses but destroy a career.

We cover 4 massive CFO mistakes through history and how your company can avoid them.

Argentina Currency Crisis Brings Big Risks to Companies

Argentina Currency Crisis Brings Big Risks to Companies

Between talks of default as Argentina struggles to repay heavy government borrowing, historically high interest rates, and the Argentinian Peso declining 45% against the U.S. dollar, the business risk of working in Argentina is high.

President Mauricio Macri and his pro-business government face an uphill climb in stabilizing the currency and solving its mounting economic problems. Here are the issues that business operating in Argentina need to know.

3 of the Worst Currency Devaluations in History (and 1 to Watch for Today)

3 of the Worst Currency Devaluations in History (and 1 to Watch for Today)

Continuing the increasing trend of shocking currency developments in recent years, global foreign exchange markets have witnessed drastic events recently.

Join us in this article as we take a look at 3 of the most severe currency devaluations in history—as well one to watch out for—and what businesses can learn to protect themselves from risk.