In order to mitigate foreign currency gains and losses, companies routinely hedge away currency risk associated with balance sheet exposures. Companies need to identify all monetary accounts on the balance sheet and aggregate the foreign amounts...
August
26,
2019
Posted by
Sandra Koch
Balance Sheet Exposures Balance sheet exposures are the drivers of the FX Gains and Losses that impact earnings every month. They are monetary accounts like cash, accounts receivable, accounts payable, inter-company balances and more that are...
August
19,
2019
Posted by
Sandra Koch
A majority of corporations identify and hedge balance sheet exposures. In fact, they are the most commonly hedged exposures by far. In order to do so, one must understand why balance sheet exposures pose a risk in the first place and how to...
August
12,
2019
Posted by
Sandra Koch
Currency movements affect internationally operating companies in many different ways. For example, when a U.S.-based firm sells goods and services in a foreign currency, their USD cash results fluctuate in relation to that foreign currency. When...
July
08,
2019
Posted by
Helen Kane
Motivational speaker Brian Tracy said: “Incorrect assumptions lie at the root of every failure. Have the courage to test your assumption”. Testing your assumptions is exactly what we plan to do.
July
25,
2018
Posted by
Glenn Suarez
Time is running out. Economic conditions in Argentina have deteriorated, with interest rates exceeding 40%, the Argentine peso (ARS) depreciating more than 50% vs. the U.S. dollar (USD) in the last year, and inflation rates approaching 4% per...
March
19,
2018
Posted by
Glenn Suarez
A successful foreign exchange hedge program requires both a well-planned implementation and careful maintenance. Unclear objectives, poorly documented strategies, and bad data lead to confusion and unexpected results. Surprises happen. Fingers...
February
12,
2018
Posted by
Helen Kane
With the prospect of off-shore cash moving back to the US, and much of it currently denominated in EUR or other volatile foreign currencies, when should treasury departments be protecting the USD value of these soon-to-be repatriated amounts? ...
September
13,
2017
Posted by
Jim Shepard
The critical role of hedging global operations is rarely recognized. Read on as we examine the importance and how it can save your company’s earnings. Currency movements – whether overnight surprises like the GBP’s free fall the morning after...
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