How FX Providers Can Help Prepare You for Market Motion

 An Article by Xe 

Currency market moves caught you off-guard? You’re not alone. By working with a knowledgeable FX provider, you can minimize the effects on your business.

No matter when you check, the currency markets are constantly moving. Currency values are subject to drastic change seemingly at the drop of a hat.

Volatility in the financial markets isn’t random; changes in currency values are a direct result of real-world factors. Examples of the real-world events that can lead to increases and decreases in currency values include:

  • Natural disasters
  • Recessions
  • Inflation
  • Interest rates
  • Political happenings

It’s not uncommon for the markets to have slower periods of muted volatility, low interest rates, and steady returns in equity markets. But on the other hand, drastic changes can strike seemingly out of nowhere.

Volatility in the markets can have powerful, tangible impacts on businesses around the world. Corporate finance departments, treasury groups, CFOs, and business owners will be the ones left to face the consequences.

What could this mean for your business? Volatility in the markets can potentially:

  • Raise import costs
  • Reduce export sales margins
  • Make your product less competitive
  • Possibly disrupt your business plans for 2020 and beyond.

Managing FX Risk with Xe

Your corporation doesn’t need to wait until the markets have already started moving to take action. FX volatility is a risk you can manage, and comprehensive FX risk management measures can help your organization to reduce the impacts of market volatility and account for future shifts in the market.

Many organizations lack FX risk management programs. Some feel that FX risk isn’t a major risk to their organization, while others lack the expertise or resources to implement the effective measures that their organization needs. Partnering with a knowledgeable FX provider can help your organization to manage its currency risk.

At Xe, we have been operating in the currency business for over 25 years as a knowledgeable authority. We have extensive knowledge of the markets and comprehensive product offerings including FX risk management tools to help you and your corporation manage your currency risk with expert, tailored solutions.

These examples show that where data flows are restricted, the legal response involves compromises. That said, we think data privacy shouldn’t be seen as a hindrance. It’s more of a minimum standard that you promise to live up to for your users and/or employees.

As we heard from Sir Tim Berners-Lee, data flow is not only crucial to the usability and excitement of the internet, it is also fundamental to its power. Having two internets hinders the user experience and too much unnecessary data movement creates major privacy issues. Plus there is the risk of a 4% of annual global turnover in fines if it’s done badly.

The next few months will be very interesting for the EU, US and UK. We hope that decision-makers do not choose to play geopolitics with data flows. But if they do, we have some tested ways that businesses can work within the new rules. Whatever the outcome though, the internet will always find a way.

Interested in how we can help you and your business to address your FX risk?

Get in touch with Anjulie Patel on +44 7384 113 495 / or alternatively use the following link to register for a cost and obligation free account and we will arrange a time to speak in more detail about your business’ FX.