RECENT ARTICLES

Tuesday, September 10th, 2019 - Make a comment

Unlike most financial markets, currency markets move in relative terms.  They are impacted by the economic and political conditions and policies of one country compared to another as well as the observations of traders and commentators as to the successful (or not) implementation of these economic and political policies when one country is compared with another. How then, do we take this information and use it to achieve the best possible result as it applies to the management of currency exposures? In this paper we will discuss: How to define currency risk management; The application of Benjamin Graham’s investment approach to currency ...

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Monday, April 20th, 2009 - Make a comment

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Wednesday, January 28th, 2009 - Make a comment

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. Financial markets predictions have about as much chance of success as a 4 year old playing pin the tail on the ...

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Wednesday, November 26th, 2008 - Make a comment

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. Like any investment process, the key to success is to implement a set of principles ...

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Monday, September 15th, 2008 - Make a comment

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Sunday, August 3rd, 2008 - Make a comment

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 ...

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Tuesday, June 24th, 2008 - Make a comment

If you could ask any question about how foreign exchange hedging can support business growth what would it be? Please ask your questions by posting comments at the bottom of this page.

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Tuesday, June 3rd, 2008 - Make a comment

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. Less than a quarter of SMEs involved in exporting engage in any kind of currency hedging. A key element that separates the successful globally focused entrepreneur from his less successful counterpart is the management of currency fluctuations.  In a recent Austrade-DHL survey published in July 2007, figures showed that less than a quarter of SMEs involved in exporting engage in any kind of currency hedging.  ...

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Tuesday, June 3rd, 2008 - Make a comment

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 ...

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