Currency market moves caught you off-guard? You’re not alone. By working with a knowledgeable FX provider, you can minimize the effects on your business.
8 de septiembre de 2020 — 2 min read
No matter when you check, the currency markets are constantly moving. Currency values are subject to drastic change seemingly at the drop of a hat.
Volatility in the financial markets isn’t random; changes in currency values are a direct result of real-world factors. Examples of the real-world events that can lead to increases and decreases in currency values include:
Natural disasters
Recessions
Inflation
Interest rates
Political happenings
It’s not uncommon for the markets to have slower periods of muted volatility, low interest rates, and steady returns in equity markets. But on the other hand, drastic changes can strike seemingly out of nowhere.
Volatility in the markets can have powerful, tangible impacts on businesses around the world. Corporate finance departments, treasury groups, CFOs, and business owners will be the ones left to face the consequences.
What could this mean for your business? Volatility in the markets can potentially:
Raise import costs
Reduce export sales margins
Make your product less competitive
Possibly disrupt your business plans for 2020 and beyond.
Your corporation doesn’t need to wait until the markets have already started moving to take action. FX volatility is a risk you can manage, and comprehensive FX risk management measures can help your organization to reduce the impacts of market volatility and account for future shifts in the market.
Many organizations lack FX risk management programs. Some feel that FX risk isn’t a major risk to their organization, while others lack the expertise or resources to implement the effective measures that their organization needs. Partnering with a knowledgeable FX provider can help your organization to manage its currency risk.
At Xe, we have been operating in the currency business for over 25 years as a knowledgeable authority. We have extensive knowledge of the markets and comprehensive product offerings including FX risk management tools to to help you and your corporation manage your currency risk with expert, tailored solutions.
Interested in how we can help you and your business to address your FX risk? Visit our Business page to get started.