Online participants and business exporters such as an international fleet sales group, advanced manufacturers, a recycling business, and a coating company for large scale projects gathered in Walnut Creek, California, today in order to learn from Michael Bourke, a managing partner at Bannockburn Global Forex. Michael shared his knowledge about reducing the cost to companies during foreign transactions and managing exchange payments between international companies.
These are a few highlights from the discussion:
- Currency markets are extremely volatile
- Understand and identify your currency exposures, and make sure everyone in your company understands those exposures
- Introducing foreign currency exposure/hedging into your day-to-day dealings should not be a concern or preventive to reviewing your current approach
- Implementing a hedging strategy can lead to certain cashflows and minimize margin erosion
- Hedging is not all or nothing –can do both / be dynamic
- You don’t need to be a FX expert – but you need to work with someone you trust.