Foreign Exchange Risk Solutions
By incorporating our foreign exchange risk solutions into your broader business strategy, we can help protect your profitability by managing your exposure to exchange rates – whatever your risk appetite.
The foreign exchange market is volatile, with unpredictable shifts leaving many importers and exporters vulnerable to significant revenue losses. To protect your profitability you need to manage foreign exchange as a business risk, and consider your foreign exchange strategy as integral to your business plan as distribution, logistics and marketing.
Irrespective of the Hong Kong dollar’s position, you can employ strategies to provide risk insurance, such as hedging, which allows you to lock in current exchange rates for future payment dates, protecting you from currency downturns and allowing you to control costs. At Travelex Global Business Payments, we offer forwards as risk management solutions.
Forwards
A forward contract offers certainty and protection by locking in the current rate for future use.
A forward is an agreement between you and Travelex Global Business Payments to buy or sell a fixed amount of foreign currency at an agreed rate, for a set period of time. You will enjoy pricing certainty by locking in a rate for future use, helping you to accurately budget, control costs and potentially protect your profit.
We offer two types of forward contracts:
Fixed date forwards are calculated for a fixed delivery date, with no early partial settlements dates permitted.
Open period forwards operate over a defined period of time, during which any portion of the contract can be settled as long as the entire contract is settled by the end date.
| Fixed date forwards | Open period forwards | |
|---|---|---|
| Cost certainty | Yes | Yes |
| Can pre deliver | Yes | Yes |
| Protect bottom line against adverse currency movements | Yes | Yes |
| One rate across several dates | Yes |
