Business FX Case Studies - Hedging Policy
ABC Company Limited is a live goods exporter investigating the option to list on the stock exchange. As part of their listing procedures the company’s senior management and Board have decided to put in place a foreign exchange hedging policy. Following discussions with several suitable providers, Bell FX was appointed.
Can you tell us about your selection procedure?
We were looking to appoint a company that specialised in foreign exchange and obviously foreign exchange conducted by businesses. We wanted a reliable business with a good reputation and strong backing. Dealers had to be experienced, professional and accessible.
What service did Bell FX provide?
We have a treasury function in-house, so we simply rely on Bell FX for timely execution and to provide us with competitive rates on both the spot and forward markets. Bell FX provided us with a quick and seamless service, executed by professional staff.
What kind of foreign exchange products did your hedging policy incorporate?
We used a whole range of products over different time frames based on our currency expectation for the fiscal year. Without giving too much away, we’ve selected to use currency options for a particular portion of our annual forecast quantity of currency risk. We also use forward exchange contracts, as well as the spot market.
How is the day-to-day management of your forex trade?
Great. Bell FX understands our requirements and processes are in place to make transactions as seamless as possible and the service is excellent. As part of our business model we have always been upfront about using other suppliers but we’ve always found Bell FX to be competitive on every level.
Looking forward any further plans for your forex?
As you would know hedging policies are difficult to manage. The policies themselves need to be reviewed and monitored but also the procedures and controls that surround the policy need to be constantly revisited. We look forward to continuing to work with Bell FX on executing our FX requirements in a timely and cost effective manner.
Call Bell FX today on 1800 003 815.