IT is unlikely Robbie Williams had currency fluctuations in mind when he came up with the album title, Swing When You’re Winning.
Unfortunately for global businesses, it isn’t always the case that rates of exchange work in their favour and without due care and attention a swing in the wrong direction can mean losing – on occasions in a big way.
The damage that can be caused by currency fluctuations to companies who export and import can be hugely harmful and experts are warning firms it is more important than ever to guard against them.
Leaving currency exposure to chance is considered foolhardy when shipping and production costs and the like are concerned. So, what to do? Well, Forward Contracts have been around for decades and they have never been more prevalent.
Buying Euros, US Dollars or Sterling, for instance, at an agreed rate at a set date in the future to hedge against swings in their value, really is the way forward! Anything that can be included in budget forecasts with absolute accuracy, and no nasty surprises, has to be invaluable. It also allows a business to be consistent with its pricing of products as they won’t need to be altered too often.
Why not investigate Forward Contracts if you haven’t done so already? Sounds like a win, win situation – one that could make you sing when you’re winning!