An Exporter’s Nightmare

With the world focused on the threat of a US recession, the jury still out regarding growth in Europe and the first rumblings of declining growth in China, exporters must be starting to evaluate the impact of a slowing global economy on their bottom line. Couple this with a highly volatile exchange rate and exporters have a recipe for potential disaster. But is it?

Most entrepreneurs are highly attuned to the impact of a downturn in their profit, managing the cash flow around which they have built their business very successfully. But there are other ancillary areas of an export business that can also contribute to the bottom line. One of the most commonly overlooked of these is currency hedging.

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