Foreign exchange

See the currency risk, not just the rate.

International investments and cross-border commitments introduce currency exposure. A useful exchange plan considers the timing, total cost and financial effect of a movement in rates.

01

Map the exposure

Identify the currencies involved, expected payment dates and the amounts that are certain or still provisional. Distinguish an operational payment from a speculative position.

02

Compare the full cost

Ask about the exchange rate, spread, transfer charges and receiving-bank fees. Confirm settlement instructions and timing with the relevant provider before releasing funds.

03

Plan for change

Exchange rates can move before a transaction settles. Any specialist hedging or execution arrangement requires an explanation of its risks, eligibility and contractual terms.