The recent fluctuations in currency rates are leaving many UK businesses concerned. Those with an international presence will almost certainly have some foreign currency exposure and, as such, any significant swings in the currency exchange rates can have negative impacts on a company’s bottom line, where profits and margins are hit. That is why it is vital that those UK businesses put strategies in place that help them mitigate their currency risk.
There are a range of options available to our clientele, including spot contracts, forward contracts, non-deliverable forward contracts and options. It is important for us to work closely with our clients to really try and understand their specific circumstances; it’s the only way we can tailor our product offerings to suit each individual’s unique requirements.
The fact is that no matter what anybody says, it is impossible to know precisely what is going to happen to any given currency from one day to the next. Anybody who claims otherwise is not telling the truth and, unless they have a magic crystal ball, it is simply not possible to predict what will happen with any certainty. That is why we’re keen to emphasise just how important an effective currency risk management strategy can be in terms of protecting a businesses’ bottom line. Besides, running a business is difficult enough to begin with, without the added burden of having to keep an eye trained on the currency markets. Far better to leave that concern to us while you can get on with the real task of growing your business.
A recent article that features on Drapers’ website shows how recent movements in sterling are leaving UK businesses concerned, where a recent study published by Lloyds Bank showed that more than half of those companies surveyed are worried about foreign exchange movements.