Navigating FX Risk Programs as Disinflation Tilts Forward    Since early 2022, central banks have taken substantial strides through interest rate hikes to address persistent inflation developments from 2020-21. Market tone is that the global economy is nearing the conclusion of the tightening cycle, especially for major central banks, signaling potential economic stabilization. Upon closer…

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So you’ve decided to hedge, but how much? By Ritwik Sarkar Mar 07, 2023    Corporates continue to face new and difficult management choices when it comes to effectively reducing FX risk because currency volatility is anticipated to be a constant in the short- and medium-term market structures. After a firm confirms that they must…

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Reviewing FX Risk Programs of 2022  By Ritwik Sarkar Dec 15, 2022   2022 has not ceased to let up on market participants with multiple headwinds. Corporations have shifted from treating FX and interest rate volatility as an afterthought, to active boardroom discussions. Fortune 500 companies have had to emphasize constant-currency metrics to lighten the…

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Evolving Your Risk Management Approach By Ritwik Sarkar Jun 09, 2022   After two years of pandemic induced disruptions and elevated inflationary pressures that followed, organizations are continuing to struggle with FX. The fallout from this period indicated that while some have a relatively robust approach to FX, the changing dynamics mean some corporations need…

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Window Forwards: A Simple Tool in Uncertain Times By Ritwik Sarkar Jul 07, 2021 As payment uncertainties persist well into the first half of 2021, treasury teams have been evaluating flexible strategies as supply chain disruptions continue. From semiconductor backlogs to rising commodity prices due to supply side bottlenecks, the reopening still brings uncertainty. Window…

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A Treasurer’s Approach to Risk By Ritwik Sarkar Dec 08, 2021   At Klarity, we routinely collaborate with treasury teams on how their corporation can achieve a quantifiable measure of their currency exposure. While a number of risk calculation can be used, one of our preferred methods is rooted in Value at Risk modeling. This tool…

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A well implemented hedging program should not solely be influenced by taking directional views. The goal is to reduce volatility and provide certainty to the business. Do you internally deliberate, and take a stance on currencies to determine revenue, or expense hedging strategies’?

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Hedge strategies that are constructed upon a market view will not consistently minimize a company’s FX risk, but instead are likely to be selectively implemented ultimately reflecting market risk. The base of every good financial plan is a strong budget, that takes into account multiple market variables, giving you the best protection against volatility.

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Welcome to WordPress. This is your first post. Edit or delete it, then start writing!

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