Protected your business from currency movements?
Don’t let your business get caught out by currency headwinds in 2016
Over the course of 2015 FX markets featured an unsettling amount of currency fluctuations. Some businesses benefitted when the exchange rates moved in their favour but most would have found they were caught out.
Here are just a few news articles showing the pain felt by companies in 2015 due to currency movements.
“The strong U.S. dollar, which hurts the value of sales outside the United States, weighed heavily on J&J’s fourth quarter results”
“Foreign exchange drains profits at Experian”
“AstraZeneca’s third quarter profit hit by foreign exchange”
“Procter & Gamble Co Earnings: Foreign Exchange Dents Sales”
“Coca-Cola Warns Battle With Strong Dollar Will Continue”
“SABMiller hit by exchange rates despite fizzing sales”
For businesses that are sensitive to foreign exchange rates, we suggest they should consider Forward contracts as a potential solution. With a forward contract a business is able to lock in the exchange rate for a specified future delivery date. In essence, book now, pay later.
The volatility experienced in the markets is highly evident in the charts below and it is worth thinking how your business would have benefitted if you obtained your target exchange rate.
How can Mayfair FX help?
- Gives you access to both Spot or Forward contracts
- Charge you a small FX margin ‘Spread’ – save up to 3% compared to using a Bank or FX Broker
- No hidden fees or charges
- Online platform to check & book currency rates 24/7
- Hassle-free registration