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Your company works hard and has built a reputation for quality products and excellent service. You have expanded into international markets.
You have great local partners who help with the nuances of customs and languages in those markets. You discover the best clients. You negotiate the best deals. You’ve even gone so far as to offer to price the transaction in their currency, to make the deal more acceptable to the new client. You leave nothing to chance.
FX markets are very volatile. That payment in local currency worth $100,000 today may be worth less (or more) when received in 90 or 180 days. What can you do to assure that all that hard work really pays off?
By hedging the risks arising from pricing your transaction in foreign exchange, you can better achieve your top line revenue goals, as well as manage your operating margins. The proper FX hedge can help mitigate the FX risks, making that foreign transaction seem very much like the ones you do in the United States.
In fact, by accepting local currency pricing, you may be able to enhance your bottom line, whether that’s by agreeing to a sales price worth more when translated into US Dollars, or getting cheaper prices for those foreign sourced components.
Regardless of the underlying commercial transaction, there are a number of FX products and services available to assist in hedging foreign exchange financial risks. Hedging the FX market risk lets you manage the technical and commercial aspects of your business. Consult your FX Advisor to create a hedging strategy customized to address your needs and provide the protection your company deserves.
For questions or to learn more about Vectra Bank’s Foreign Exchange Solutions, please contact Neil Stogdill or complete the form below.
Senior Vice President, Foreign Exchange Advisor
Vectra Bank has a department dedicated to providing foreign currency and trade finance options for business clients.