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Foreign Exchange Hedging

Active foreign exchange risk management is often overlooked by importers and exporters, leaving them subject to the intense volatility of the foreign currency markets.

Many companies underestimate this risk to their Income Statement and Balance Sheets.

Firms that trade with international partners need to view their overall FX risks from a holistic perspective, including commodity risks and supplier/payment options. Vedanta Hedging will help you to understand the true risks across all of your currency pairs. FX risk directly affects cash flows, stock levels and, of course, the Income Statement.

As your business grows, it may no longer be optimal to buy your currency at ‘spot’ or using ‘Forward Contracts’. There are many derivative-based solutions that can help protect your FX risk, while also providing you with commercially attractive outcomes.

Why?

The rationale for foreign exchange hedging is to increase the transparency and certainty of currency movements. In our experience, banks and brokers can sometimes advise clients to use more complex products than are suitable for them.

Timing

Understanding and monitoring FX risk can be time-intensive. With our help, you can release more time to focus on your real, underlying business, rather than try to ‘time the markets’, while we bring our niche expertise to work for you.

Although a foreign exchange hedging strategy may be appropriate for you, this cannot be executed without considering the appropriate market timing and ensuring price transparency.

True Partnership

Above all, Vedanta Hedging will ensure that at every step, clear and simple language is used, to help understand exposures and the various hedging options available, in contrast to ‘market jargon’ that Banks often use. Some of the instruments that can be used for Risk Management include Swaps, Forward Contracts, Options, Collars and many others.Vedanta can also help your Finance function review their internal processes which can also reduce FX risk, which may not necessarily involve the use of derivatives.

In this way, Vedanta Hedging can become a true part of your Finance team.

“We have known Abhishek Sachdev at Vedanta both personally and professionally for a number of years and were aware of the services his Company provided. It was an easy decision to make to request his services as he was best qualified to help us achieve our goal. The service that he and his team provided, in particular Ms Kinga Broel-Plater, was of a high and professional level and everyone at Vedanta seems to know their subject in depth! From our perspective knowing Abhishek personally was indeed an added bonus and it was clear early on that he knew his stuff inside out.We had dealings with Kinga Broel- Plater and this too was conducted to our satisfaction.We would have no hesitation in recommending Abhishek and his team and would use their services again in the future.” – Sharad Raja, Motor Fuel

“In the world of swaps, Abhishek has profound wisdom. This has come from immersion in the realities of the recent interest rate hedge mis-selling fiasco. Abhishek understands the perspectives of the various parties involved; the banks, regulators, lawyers and the SME’s who bought swaps. His advice is consistently insightful, relevant and effective.” – Mark Bertolini, Blue Spark Holdings Ltd

Find out how we can help your business.

Call us today on 020 7183 2277 or click the button below to contact Vedanta Hedging.

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