As businesses try to stay afloat and adapt to restrictions posed by the Coronavirus pandemic, protecting your bottom line from the unpredictability of the currency markets is more important than ever.
When making important decisions regarding their currency exposure, some businesses may rely on currency predictions to guide them. However, can these predictions be trusted? Currency movements are based on economic, political and, more recently, health news. Trying to foresee the direction that these factors will take is nearly impossible.
That’s why, here at Smart Currency Business, we take the view that forecasts can be dangerous. As you can see from our latest Quarterly Forecast, the predictions from major banks are so vastly different that no one can use them to make any business assumptions.
These sample predictions from major banks prove that basing your company’s budgets on these forecasts could put you and your business in very dangerous territory:
1. GBP/EUR 6 month forecast ranges from 1.08 to 1.22
2. EUR/USD 6 month forecast ranges from 1.06 to 1.19
The unpredictability of the currency markets, especially in this climate of uncertainty, supports our resounding message that a risk management approach to currency is best. To discover just how extreme these predictions are from major banks, download your copy of Smart’s latest Quarterly Forecast here.
Do you manage your currency exposure effectively?
If we can’t rely on predictions, what’s the best way to conduct a risk management approach to currency?
After dealing with businesses for many years, we know that managing your currency exposure can be extremely time-consuming. In the current climate, when businesses have been forced to adapt to a ‘new normal’, you may be looking for opportunities to speed up your processes and streamline your ways of working.
With this in mind, Smart has launched a brand new, market-leading risk management platform. SmartHedge has been created due to client demand and is designed with clients at front of mind – it’s therefore quick to set up, incredibly intuitive and easy to use. If you manage your currency exposure with time-consuming excel spreadsheets, struggle to understand how currency impacts your cash-flows or find preparation for audits long-winded and strenuous, then this is the platform for you.
Everything is laid out in one, easy to use hub which saves you time and gives you a clear view of how your strategy is performing. It is already being used successfully by a number of large and small businesses across the country.
Keen to find out more? Email Smart Currency Business on email@example.com or find out what our clients are saying about SmartHedge.