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Hedging and FX risk management solutions help your business manage and mitigate volatility in the foreign exchange market. We understand participating in the global market on any scale can bring great opportunities, while also introducing unique foreign exchange exposure. Whether purchasing machinery from vendors, selling parts to clients, or paying rent across borders, currency exchange rates can create uncertainty on your bottom line.

It is critical to devise a risk management plan that mitigates FX volatility risk by stabilizing cash flows and protecting budgeted rates. Foreign currency hedging can be likened to an insurance policy that protects against the impact of foreign exchange risk.

 

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Develop your FX hedging process

Having a strategy to handle your FX risk starts with identifying your exposure. From there establishing a policy and determining your budget exchange rates and target goals can inform you when to act and under what market conditions. Here's a list of top concerns that could help you identify if FX forwards is right for your business.

  • Managing against FX market volatility
  • Ensuring profit margins
  • Protecting balance sheets
  • Enhancing cash flow
  • Mitigating foreign exchange exposure
  • Improving company positioning in international markets
  • Affirming competitive pricing

Determine the right tools to hedge currencies

When you approach your currency hedging strategy, determining which tools such as - Fixed-Dated Forwards, Open-Dated Forwards, FX Swaps, and FX Spot Payments - should be deployed is important. Learn the difference between some of the tools you can use below.

Fixed-Dated Forwards
The most common hedging tool, forward contracts fix a defined future (value) date at which to buy or sell a stated amount of currency at an agreed rate. The defined future date cannot be altered.

 
Open-Dated Forwards
This hedging tool offers the flexibility of an open time period in which to settle and deliver the currency. Open forwards allow you to draw down against the original amount contracted prior to the value date.

 
FX Swaps
The simultaneous purchase and sale of identical amounts of one currency for another with two different value dates (normally spot and forward) is used to modify delivery obligations for Fixed-Dated Forwards.

 
FX Spot Payments
This tool allows you to get a live exchange rate for the foreign currency you need to pay and make the payment right then and there. Easy, fast, and secure.



 

Why CXI's FX Forwards in your hedging strategy?

Forward contracts often form the backbone of foreign exchange hedging strategies for both large corporations and small
businesses alike. Simply put, a forward contract allows you to lock in today’s rate, for settlement at a future point in time. 

Low transfer fees and great rates - Save with no hidden fees or charges and benefit from extremely competitive exchange rates.
Safety and security - We securely send money around the globe on your behalf.
Fast international payments, 24/7 - Whenever, wherever you are. We’re ready on your phone, tablet or browser, for you to transact quickly and securely.
Unparalleled customer service - Highly rated by customers for our cutting-edge technologies and personalized support.

A trusted international bank group

Publicly traded on the Toronto Stock Exchange

Executives with 30 years in the industry

Specializes in international payments

Highly rated client care and support team

FX risk strategies built for a volatile market

FX Expertise

A team that provides a strong FX strategy. Featured in major news publications such as CNBC, Reuters, MSN, and Yahoo Finance.

Dedicated Specialists

One-on-one support with trusted FX experts who proactively monitor and advise on relevant market conditions.

Customized Strategies

Choose from a variety of hedging tools: Fixed-Dated Forwards, Open-Dated Forwards, FX Swaps, or FX Spot Payments.

Digital Tools

Explore an intuitive, innovative, and secure FX trading platform, accessible 24/7.

FX Trading Desk

Get an FX focused specialist who delivers custom-fit strategies using our FX expertise.

Extension of Your Team

Help your treasury team better analyze the results and impacts of FX to build a program that best fits your business.

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