{"id":14091,"date":"2018-08-16T15:18:46","date_gmt":"2018-08-16T15:18:46","guid":{"rendered":"https:\/\/www.tradefinanceglobal.com\/?page_id=14091"},"modified":"2025-02-20T09:12:05","modified_gmt":"2025-02-20T09:12:05","slug":"currency","status":"publish","type":"page","link":"https:\/\/www.tradefinanceglobal.com\/currency\/","title":{"rendered":"Business Currency"},"content":{"rendered":"\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-header-without-image d-flex flex-direction-column justify-content-center\">\n    <h2 class=\"fs-32 fw-700 fs-xs-28 not-for-table-content\" id=\"heading-business-currency\">\n        Business Currency    <\/h2>\n    <div class=\"d-grid grid-col-2 grid-col-xs-1\">\n                            <div class=\"\">\n                <div>Last updated on 20 Feb 2025<\/div>\n                <div>16 Aug 2018 . 1 min read<\/div>\n            <\/div>\n            <\/div>\n    <\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\"><figure class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Business-Currency-_-Trade-Finance-Currency-Solutions-_-FX-Hub.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" style=\"object-fit:cover;\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Business-Currency-_-Trade-Finance-Currency-Solutions-_-FX-Hub.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Business-Currency-_-Trade-Finance-Currency-Solutions-_-FX-Hub-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Business-Currency-_-Trade-Finance-Currency-Solutions-_-FX-Hub-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Business-Currency-_-Trade-Finance-Currency-Solutions-_-FX-Hub-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Business-Currency-_-Trade-Finance-Currency-Solutions-_-FX-Hub-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Business-Currency-_-Trade-Finance-Currency-Solutions-_-FX-Hub-414x168.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Business-Currency-_-Trade-Finance-Currency-Solutions-_-FX-Hub-600x243.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Business-Currency-_-Trade-Finance-Currency-Solutions-_-FX-Hub-372x151.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Business-Currency-_-Trade-Finance-Currency-Solutions-_-FX-Hub-450x182.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Business-Currency-_-Trade-Finance-Currency-Solutions-_-FX-Hub-380x154.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Business-Currency-_-Trade-Finance-Currency-Solutions-_-FX-Hub-285x115.jpg 285w\" sizes=\"auto, (max-width: 869px) 100vw, 869px\" \/><\/figure><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<p><\/p>\n\n\n<div class=\"bg-light-blue d-flex gap-16 h-auto p-16 rounded xs-flex-direction-column\">\n    <div class=\"\">\n    <img decoding=\"async\" style=\"min-width:100px;max-width: 150px\" src=\"https:\/\/secure.gravatar.com\/avatar\/c5c7f46c74d085beb1f2c4863fc91b31?s=160&#038;d=mm&#038;r=g\" class=\"w-100 rounded\">\n  <\/div>\n  <div class=\"col-span-2 col-span-xs-1\">\n    <div class=\"d-flex flex-direction-column gap-16 fs-16 justify-content-between\">\n      <div class=\"fs-16 fw-700\">Deepesh Patel<\/div>\n      <div class=\"fs-14 fw-400 elipsise-2-line\" title=\"Deepesh Patel is Editorial Director at Trade Finance Global (TFG) and host of Trade Finance Talks. Deepesh regularly chairs and speaks at international industry events held by the IFC, EBRD, IMN, WTO, Financial Times and Economist Impact, as well as industry associations including ICC, FCI, ITFA, ICISA and BAFT.\">\n        Deepesh Patel is Editorial Director at Trade Finance Global (TFG) and host of Trade Finance Talks. Deepesh regularly chairs and speaks at international industry events held by the IFC, EBRD, IMN, WTO, Financial Times and Economist Impact, as well as industry associations including ICC, FCI, ITFA, ICISA and BAFT.      <\/div>\n      <div>\n        <a class=\"text-black fs-12 small-link-arrow-right\" href=\"https:\/\/www.tradefinanceglobal.com\/posts\/?author=57\">\n          <span>\n            Latest Post          <\/span>\n        <\/a>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"block-cta max-w-100 p-32 h-auto rounded sm-w-60 dark-mode bg-black align wp-block-acf-block-cta\">\n  <h4 id=\"heading-access-trade-receivables-and-supply-chain-finance\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n    Access trade, receivables and supply chain finance  <\/h4>\n  <p class=\"block-subtitle dark:color-white\">We assist companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.<\/p>\n  <a href=\"https:\/\/www.tradefinanceglobal.com\/get-trade-finance\/\" class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n    <span>Get started<\/span>\n  <\/a>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-contents\">Contents<\/h2>\n\n\n<div class=\"block-table-content h-auto bg-white auto\">\n    <ul class=\"table-content\"><\/ul><\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"block-table-content h-auto bg-white auto\">\n    <ul class=\"table-content\"><\/ul><\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p><\/p>\n\n\n\n<div class=\"wp-block-columns container w-100 w-auto country-quick-link is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #f2f5f7 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-business-currency\">Business Currency<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/currency\/\">\n        Currency      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/spot-contracts\/\">\n        Spot Contracts      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/forward-contracts\/\">\n        Forward Contracts      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/foreign-exchange-options\/\">\n        FX Options      <\/a>\n      <\/div>\n<\/div><\/div>\n<\/div>\n\n\n\n<p class=\"bg-tale rounded p-24 h-auto\" style=\"font-size:16px\">Trade Finance Global are experts in foreign currency for business, with a wealth of useful information on currency products, international money transfer and expert traders to help you manage currency risk and trade abroad in all major currencies.<\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"block-faq overflow-hidden h-auto py-10\">\n  <div class=\"container w-auto\">\n    <div class=\"d-grid grid-col-1 grid-col-xs-2 mb-24\">\n      <h3 id=\"heading-faq\" class=\"not-for-table-content fw-700 \">FAQ<\/h3>\n          <\/div>\n    <div class=\"d-grid grid-col-4 grid-col-xs-1 gap-24\">\n              <div class=\"d-flex overflow-x-auto hide-scrollbar xs-flex-direction-row flex-direction-column gap-24 list-question\">\n                      <div class=\"single-anwser active pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"Why is currency hedging important?\">\n                Why is currency hedging important?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>Recent events around trade wars and referendums have driven volatility in major FX markets. As a result, the volatility of currencies has increased significantly and is now becoming a common occurrence. Managing volatility and currency risk are key for any business owner; the management strategy a company undergoes is critical for its success, a healthy balance sheet and reliable transfer of currency from overseas customers. Furthermore, margins are often squeezed as a result of increased regulatory scrutiny and\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Know_your_customer\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"external\">KYC<\/a>\u00a0requirements.<\/p>\n<p>There are an increasing range of FX instruments and products that if implemented, can help companies in the form of risk management. Risks include:<\/p>\n<ul>\n<li>Exchange rate volatility<\/li>\n<li>Political risk<\/li>\n<li>Interest rate changes<\/li>\n<li><a href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/libor-trade-finance\/\" data-wpel-link=\"internal\">LIBOR<\/a>\u00a0and INTERBANK rate changes<\/li>\n<\/ul>\n<p>When trading in exotic currencies, the fluctuations and volatility of currencies are a lot more than common FX pairs. So risk management, hedging of currency risk and monitoring FX changes is critical to the business owner, especially if margins are thin (e.g. for commodities traders and producers).<\/p>\n<p>Various strategies are used to manage currency risk and these usually involve using\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/currency\/spot-contracts\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"internal\">spot contracts<\/a>,\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/currency\/foreign-exchange-options\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"internal\">options<\/a>, and\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/currency\/forward-contracts\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"internal\">forwards<\/a>.<\/p>\n<\/div>\n                          <\/div>\n                      <div class=\"single-anwser  pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"Who are Trade Finance Global's currency team?\">\n                Who are Trade Finance Global&#8217;s currency team?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>The Trade Finance Global team are experts in\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/trade-finance\/\" data-wpel-link=\"internal\">trade finance<\/a>, helping businesses trade domestically and overseas. Currency solutions for businesses are vital to protect margin and revenue for any business, especially during times of foreign exchange volatility.<\/p>\n<p>With simple planning, talking to experts, and implementing strategies which can help protect your business, maximise returns when trading in different currencies and reduce the risk, Trade Finance Global is the only multi-product solution for trading overseas.<\/p>\n<\/div>\n                          <\/div>\n                  <\/div>\n        <div class=\"col-span-3 col-span-xs-1 detail-anwser-block hide-scrollbar bg-tale rounded p-24\">\n          <h4 class=\"fs-20 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"Who are Trade Finance Global's currency team?\">\n            Why is currency hedging important?          <\/h4>\n          <div class=\"detail-anwser fs-16\"><p>Recent events around trade wars and referendums have driven volatility in major FX markets. As a result, the volatility of currencies has increased significantly and is now becoming a common occurrence. Managing volatility and currency risk are key for any business owner; the management strategy a company undergoes is critical for its success, a healthy balance sheet and reliable transfer of currency from overseas customers. Furthermore, margins are often squeezed as a result of increased regulatory scrutiny and\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Know_your_customer\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"external\">KYC<\/a>\u00a0requirements.<\/p>\n<p>There are an increasing range of FX instruments and products that if implemented, can help companies in the form of risk management. Risks include:<\/p>\n<ul>\n<li>Exchange rate volatility<\/li>\n<li>Political risk<\/li>\n<li>Interest rate changes<\/li>\n<li><a href=\"https:\/\/www.tradefinanceglobal.com\/treasury-management\/libor-trade-finance\/\" data-wpel-link=\"internal\">LIBOR<\/a>\u00a0and INTERBANK rate changes<\/li>\n<\/ul>\n<p>When trading in exotic currencies, the fluctuations and volatility of currencies are a lot more than common FX pairs. So risk management, hedging of currency risk and monitoring FX changes is critical to the business owner, especially if margins are thin (e.g. for commodities traders and producers).<\/p>\n<p>Various strategies are used to manage currency risk and these usually involve using\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/currency\/spot-contracts\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"internal\">spot contracts<\/a>,\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/currency\/foreign-exchange-options\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"internal\">options<\/a>, and\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/currency\/forward-contracts\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"internal\">forwards<\/a>.<\/p>\n<\/div>\n          <a href=\"\" class=\"detail-link text-black fs-12 small-link-arrow-right text-right mr-0 d-hidden\">\n            <span><\/span>\n          <\/a>\n        <\/div>\n 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