EXCHANGE RISK MANAGEMENT
ย โThe only thing that is certain is uncertaintyโ
Importing/Exporting of goods and services means businesses have receipts in, or payments out, of foreign currency. The buying and selling of that money has always needed planning and given headaches but never more so than in recent years with Brexit negotiations and now with the serious world factors linked to Covid 19 and difficulties in Ukraine. These have caused increased uncertainty and extra movement in rates.
For companies trading internationally, fluctuating exchange rates can be so difficult to manage and hard to budget for. If the markets move heavily against you it can erode or even eliminate profits and in a time of tighter margins and increasing raw material costs it is ever more important to protect yourself from exchange rate risk and make savings wherever possible.
Planning is the first step to managing your FX risk. Agreeing on a budgeted exchange rate for the year will guide your transactions. Your budgeted rate should take into account the volume and timing of your expected transactions as well as being a realistic assumption of current and future rates. It can help to define this rate by analysing past trends. Planning ahead will help protect your business from foreign exchange risk and even enable you to benefit from any exchange rate movements which are in your favour. This could make a huge difference to your P/L bottom line.
Nobody can pretend to know where rates are going โ all the best analysis in the world cannot account for natural disasters, wars, unexpected viruses, the death of a political leader or the sudden turn-around in sentiment that often sparks a market to panic. That can lead to the crash of a currency or a commodity in the market place.
What you can do with careful preparation and some guidance is work to reduce or negate your risk, as and when it becomes apparent.
Having access to a currency dealer to help you monitor the markets can enable you to make more timely decisions on when to buy/sell, with that dealer being there to support you along the way.
Please contact John, at Moneycorp, to discuss further on tel 0203 823 0526, John.sawyer@moneycorp.com or get in touch with us through Hampshire Chamber of Commerce tel 01329 242420.
John Sawyer, Account Manager for the British Chambers of Commerce partnership with FX specialists Moneycorp.
International Trade workshops
click here
For further information on any of the above workshops please call our training department on 01329 242420 or email train@hampshirechamber.co.uk
Updates/Latest News:
Trade with Ukraine, Russia and Belarus
- Click hereย for a practical guide with questions on trading in this region of the world
- Click hereย for information on Humanitarian aid to Ukraine
The Department for International Trade (DIT) has expanded theย Export Support Serviceย (ESS) to act as a single point of enquiry for businesses and traders with questions relating to the situation in Ukraine and Russia.
Visitย https://www.gov.uk/ask-export-support-team, or call the helpline onย 0300 303 8955.
The service is currently operating daily from 8am to 10pm including weekends
Information correct at time of sending
ICCโs Incotermsยฎ rules are the worldโs essential terms of trade for the sale of goods and the revised publication, Incotermsยฎ 2020, is in stock at Hampshire Chamber of Commerce.
To purchase your copy please contact the international trade team on tel: 01329 242420 or click hereย
Foundationย Award in International Trade
Hampshire Chamber can now offer the Foundationย Award in International Trade, a qualification assessed by British Chambers of Commerce.
To receive the award candidates need to attend and pass assessments from 6 of the international trade training workshops on offer.
These workshops are replicated 3 times during the year.ย ย Certificates are provided for each module passed.
For more information and to book your workshops click here or call Ben McDonald on 01329 242420
Dates for your Diary:
Hampshire Chamber of Commerce is pleased to deliver these two, free of charge, 60 minute presentations with Q&A in partnership with International Trade Mattersย
Recap of Changes for Importers –ย Tuesday 12th April @ 2.30pm – 3.30pm
Delivered via Zoom
How to reduce duties and tax on your imports and exports –ย Thursday 28th April @ย 10.30am – 11.30am
Delivered via Zoom
For further information please contact Jackie Highmore via email click here
Roundup of previous news:
Export to Japan – helping your company do business in Japan click here for further information
The demand is out there.ย You should be too.
The UK market might seem big enough for your business. But thinking bigger pays off. Borders neednโt be blockers. Let us help you grow beyond them.ย Click here for further information
Additional International Services
