The beginning of the year heralds the time for predictions. It seems everyone has a view as to the direction of financial markets – equity, debt and FX – and each forecaster can give you a plausible explanation as to why you should believe them. But financial markets predictions have about as much chance of success as a 4 year old playing pin the tail on the donkey: if you get it right, you have been very lucky.
Read more…With the combination of unprecedented volatility in foreign exchange markets, and an economic slowdown set to impact importers and exporters alike, foreign exchange management is now becoming an important element of business practice.
For many, currency hedging has been regarded as a speculative exercise, often an afterthought that has little positive impact on their business. At its best, however, currency hedging can be an important investment in a business’ global growth, and for the astute business owner, the current volatile environment will cement their ongoing success.
Read more…On the surface ikebana, the centuries-old Japanese art of flower arrangement, doesn’t appear to have much in common with foreign exchange hedging. But Adrienne Sartori will tell you otherwise.
Read more…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.
Read more…Business is war and for those who operate in the global marketplace, the battlefield topography keeps changing rapidly. To succeed in this environment requires strategic vision, new and creative thinking and the ability to nimbly negotiate new challenges.
Read more…For too many years, there has been a belief that fluctuating currency markets can only be detrimental to SMEs and as a result are an “after the fact” consideration. This viewpoint has often resulted in an ad hoc and fearful approach to currency markets.
Typically SMEs have been at the forefront of economic developments and expansion within Australia and the current revolution is no different. The limitations of a small domestic market combined with ever advancing technological enhancements have contributed to the considerable increase in offshore activities. According to a recent report by HSBC Economist John Edwards for the Committee for Economic Development in Australia, over the past 10 years Australia has increased its ownership of overseas assets by more than 200% to $286 billion. For the most part this is the result of Australian SME’s.
