3 tools that will help you reduce exchange rate volatility
Running a business that is exposed to the foreign exchange market means you’ll always be subject to foreign exchange rate risk. Throughout each week, the value of different currencies is always in flux—from hour to hour and from day to day. Foreign currencies can fluctuate in value because of inflation, unemployment, or election results. Volatility can also be triggered by other news or global events like weather or the pandemic.
When currency rates move in your favor, you reap the benefits and you’re happy. But when they move against you, they shrink your profit margin. Depending on how narrow your profit margin is to begin with, moving rates can erode much of your profits to the point of creating a loss. Even if you are comfortable with more risk, with today’s volatility, a negative move can have a significant adverse effect on your business.
Therefore, any time a company accepts or sends a payment in a foreign currency, there is a risk of the exchange rate changing before the transaction is complete. If the rate moves against you, the transaction will cost more and have a big impact on your bottom line.
To reduce exchange rate volatility with okoora ABCM click here
You’ve Got Options
Okoora ABCM™ enables you to reduce exchange rate volatility and allows you to prepare for ups and downs in the foreign exchange market. We know that business owners and operators want to manage their risk and stay profitable. That’s why we develop different tools that will help you reduce the volatility in the exchange rate market.
Lock rate & pay later- Whether you’re an importer or exporter, it can be frustrating to monitor the international market only to miss the ideal moment for a transfer. With okoora ABCM™, you can make the most out of your profits by capitalizing on the most favorable currency rates in real time, for immediately pending transactions and for the best rates for future investments. Best of all, you can schedule payments for the best predicted market rates.
Limit board- If you don’t have the time to follow every move and every piece of news or monitor the currency market all hours of the day and night, you can still manage your business risk effectively. With okoora ABCM™ you can stay informed about what's going on in the global markets with timely alerts and AI-driven insights, so you can make informed and confident decisions in real time. With okoora's ABCM limit board you can set the rate you want to pay, and automatically execute the transaction when the market hits that rate.
Compare hedge- Currency rate risk management is an important aspect of every multinational company’s business and having the right currency rate risk management strategies is crucial in order to achieve financial targets. However, currency rate risk management can be very complex and consists of different transactions with many differences such as costs, time ranges and profit and loss characteristics. Okoora's ABCM™ compare hedge tool enable you to choose the right hedge strategy for your business. The compare hedge tool is supported by a smart optimization engine that chooses the most appropriate hedge strategy alternative for you from a wide range of possible hedge transactions.
Conclusion
With okoora ABCM™ you’ll be able make the most out of your payments, and never miss out on any favorable currency rates. You can minimize any future cashflow uncertainty by locking the exchange rate when it seems most advantageous and keep current on what’s happening in global financial markets with AI-driven insights so that you can make real-time informed and confident decisions.
To reduce exchange rate volatility with okoora ABCM click here