Foreign Currency Risk Management

Posted by Myforexeye on February 3rd, 2021

Myforexeye services empower individuals and corporates to safeguard their cash flows and assets from the forex risks by employing the right foreign currency risk management strategies. Foreign Exchange risk is the risk of incurring losses due to adverse movement in currencies. These fluctuations are caused due to many factors which are not in our control. Any depreciation or appreciation in rupee will affect the cash flows arising from that transaction. Thus businesses involved in export and import, that trade product and services in multiple countries, are majorly affected by these fluctuations and hence face this risk. This is because the proceeds of a trade, profit or loss, will be denominated in the foreign currency and will need to be converted back to the investor's base currency.