How small exporters are hedging a volatile dollar
Currency swings used to be a problem for big companies. Now new tools are putting hedging within reach of firms with ten employees.
Economics editor
5 min read
A furniture maker that now sells 70% of its output to the United States.
This article is paid content produced in partnership with Halden & Co. It was not written or edited by Pressio’s newsroom.
For a small furniture maker exporting to the United States, a 5% move in the exchange rate can wipe out a year of profit. Until recently, protecting against that risk was expensive and complicated.
New tools, lower costs
Digital platforms now offer forward contracts and currency accounts to businesses of almost any size, often with no minimum volume.
Three questions to ask
How much of your revenue is in foreign currency?
When do you get paid, and how predictable is it?
What would a 10% move do to your margin?
For many small exporters, the answer to the last question is reason enough to start.
Topics
Tomasz Wren
Economics editor
Tomasz writes about money, work and why the numbers rarely tell the whole story.
