Category

FX

FXRegionalRisk Management
June 10, 2021

Rescue Mission: Saving Trapped Cash in Depreciating Currency Markets

For projects in volatile economies, creative thinking from treasury could be critical.Profit is not a profit until it’s back in the US. That reality for many multinationals formed the backdrop at a recent NeuGroup meeting for treasurers of large-cap companies where members shared their approaches on how to react when a country’s economic environment takes a problematic turn. Emerging market nations including Argentina, Turkey and Brazil dominated the conversation, as their currencies carry risk of intense devaluation, exacerbating regulatory rules that can trap…
Justin Jones
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BankingFX
June 3, 2021

Looking at How Banks Look at You: Revolvers, Fees and Wallet Share

Treasurers seeking clarity on bank fees and product profitability get insights from Chatham Financial and NeuGroup.At a recent meeting of NeuGroup for Large-Cap Treasurers, members compared notes on revolving credit facilities, bank groups and share of wallet issues, including which products produce the greatest return for banks. A survey taken before the meeting revealed that despite market volatility last year that could have convinced corporates to replace some banks, most members did not see the size or composition of their…
Justin Jones
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FXTalking Shop
May 27, 2021

Talking Shop: The Calendar, the Clock and FX Accounting Rates

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: insights@neugroup.com. Member question: “When do you set your monthly accounting FX rates? Our fiscal month always ends on Friday, end of day. We set our month-end rates on Thursday at 5 p.m. EST. Alternatives include: “Setting FX rates on Friday morning, but intraday historical data is limited in time, which limits auditability.“Setting FX…
Justin Jones
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FXRisk Management
May 13, 2021

A Fresh Look: Refining Financial Risk Management Programs

Streamlining a hedging portfolio can seem daunting, but there are advantages for corporates that take the plunge.There’s a growing trend among corporates to take a new look at existing financial risk management programs. Some of the triggers for review are explicit events, such as financial reporting results or restatements, or changes in key personnel. But many companies are finding that longstanding hedging programs may just no longer meet the original program objectives, or may have grown in silos and created…
Justin Jones
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Cash & Working CapitalFX
April 22, 2021

Improvements in Forecasting Open Doors for Hedge Changes

A move from a current-year to a rolling forecast allows one risk manager to fine-tune the cash flow hedging program.A new CFO can mean a little change—or a lot. In the case of one NeuGroup member who manages FX risk, the new CFO drove an initiative to ensure budget forecasts would have a longer horizon and be available earlier. Over the course of two years, this has enabled an evolution from a program that only hedged a year out from…
Justin Jones
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ComplianceFXNeugroupRisk Management
April 15, 2021

Adding Complexity to Hedging: An Adventure in Entity Restructuring

An FX risk manager faces hedging and forecasting challenges amid changes made in response to BEPS regulations. It’s no surprise that the 15-point action plan announced by the OECD in 2015 to address base erosion and profit shifting (BEPS) would create various headaches for finance teams at multinational corporations. But a member presentation at a recent meeting of NeuGroup FX risk managers provided a fuller picture of some specific challenges facing companies as they comply with the new regulations.At issue for…
Justin Jones
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FXRisk Management
April 1, 2021

Cut the Static: An FX Risk Manager Transitions to Dynamic Hedging

Standard Chartered guides a client to hedging that requires more analytics but aligns more with risk management goals.The increased frequency of so-called black swan (or gray rhino) events roiling currency markets recently has more corporates establishing or revamping FX hedging programs designed to minimize earnings volatility. They face a host of decisions involving which exposures to hedge, timing, instruments and overall approach—static, dynamic or somewhere in the middle. At a recent meeting of FX risk managers, sponsor Standard Chartered, along…
Justin Jones
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BankingFXRisk Management
March 23, 2021

A Risk Manager Leveraging Flexibility to Benefit from Volatility

FX meeting sponsor Standard Chartered: Hedge policy flexibility may decide if volatility is treasury’s friend or foe.Volatility in foreign exchange, commodity and other markets sparked by the pandemic presented risk managers with challenges to their hedging programs. And while some corporates ended up with financial pain, others turned the volatility to their advantage. At a recent meeting of NeuGroup for Foreign Exchange sponsored by Standard Chartered, a representative of the bank used the positive experience of one member to underscore…
Justin Jones
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FXRisk ManagementTechnology
March 18, 2021

Racing to Change Horses: A Risk Manager’s Quick Switch to AtlasFX

An FX risk manager changed exposure ID systems and implemented the new solution in just three months.Changing horses in midstream is never easy, but sometimes it’s the right move. One FX risk manager who did it explained to members of NeuGroup for Foreign Exchange the benefits of jumping off his existing exposure identification system and hopping onto AtlasFX—in an extremely compressed timeline of three months.   The time and effort spent making the switch under pressure paid off big-time. “We…
Justin Jones
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FXRisk ManagementTechnology
March 4, 2021

AtlasFX and FiREapps: How Two FX Risk Management Systems Stack Up

NeuGroup members share what they need from FX risk management solutions, what they get and what could be better.A need for automation, a user-friendly interface and consistent accuracy were among the highest priorities in selecting an FX risk management platform for members at a recent NeuGroup meeting that zeroed in on FiREapps and AtlasFX.AtlasFX ‘dream state.’ One member who recently worked with AtlasFX to adopt the platform lauded the firm’s flexibility and willingness to meet his company’s requests. “We came…
Justin Jones
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