The problem of how to best manage foreign exchange volatility has plagued multinational companies for decades. In a 2022 survey by Deloitte, FX volatility ranked among the top treasury challenges facing organizations—with the lack of visibility of FX exposures and reliability of forecasts an issue for 83% of respondents. Rapidly changing business models make life […]
Cash flow hedging is the hedging method most widely associated with FX risk management programs that seek hedge accounting treatment. Oddly, the term “cash flow hedging” is actually a bit of a misnomer; often, the maturity of a cash flow hedge will be before the date of any associated cash flows from the underlying hedged […]
Given how complex FX risk management can be, getting it right is no small feat. According to a recent Global Treasury Survey conducted by Deloitte, FX volatility is among the top challenges facing treasurers today. FX hedging strategies help companies mitigate the risk of exposure to foreign currencies. Two of the most common hedging options […]
