“How many corporations have reported HUGE declines in their revenues this year as a result of adverse currency moves?

This is a real scandal and something that should be publicised.  Let’s get this clear, FX is an asset class in its own right and it can and should be managed. So when a company reports that it figures have fallen short because it did not hedge its FX, shareholders should start asking questions.

If a company reported that its borrowing costs had doubled because it stayed in fixed debt rather than floating (or vice versa), there is no doubt there would be an inquiry. If a company reported that it was paying £65.00 a square foot for its prestigious offices, even though commercial rents in the area had fallen to £30, we’d expect some action.

But to say that it had budgeted for the year ahead at a sterling/dollar rate of 1.65, but oh dear, now that it’s 1.85 we haven’t made as much as we should have done, is okay. Actually, it’s not.”

The above criticism appeared on an internet notice board recently and has struck a chord amongst many corporates, large and small.

We at Parasol FX are aware of the difficulties that many corporates encounter in their day to day business and feel that the added burden of maximising their foreign exchange earnings is for many a time consuming and daunting process. We are at the epicentre of the markets and are consequently well placed to advise you.

Whether you simply want to benefit from the savings our excellent exchange rates can offer you or wish to discuss more complex hedging issues please feel free to contact us.

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