As France’s presidential election demonstrates, multinationals must be mindful of their euro exposures as the Eurozone transforms. Learn more.
The euro tends to be one of the largest exposures most corporations have. The biggest danger in foreign exchange management right now is a lax attitude to euro exposure.
Being currency aware means having a continuous pulse on the foreign currencies that are resident in the assets and liabilities of the balance sheet, as well as the foreign currencies the firm is planning to do business in, in the future.
How would you be impacted if the Brazilian real has another big fall? How would you be impacted if China widens the yuan trading band by another 2%?
How would you be impacted if the euro falls to parity? If you can’t answer these questions, then becoming more currency aware could help you protect your earnings from the kind of massive currency headwinds we recently saw.
With a forum for the discussion of world currency, especially in light of the past years of heightened FX volatility, there’s bound to be some thought-provoking discussion on monetary policy strengths/weaknesses.