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Get a handle on foreign exchange

Protecting your business from currency movements will ensure steady cash flow in unpredictable times.

Currency risk arises because the value of the Australian dollar fluctuates as a result of market conditions affecting supply and demand.

The primary goal of currency risk management is to protect your business from the negative impact of exchange rate fluctuations, at the lowest possible cost. Because exchange rate volatility also provides opportunity for gains, a secondary goal can often be to provide flexibility to participate in any favourable movements of the exchange rate.

Our comprehensive range of currency risk management solutions include the following:

Forward foreign exchange

Forward foreign exchange is a risk management tool that can help protect your business from adverse exchange rate movements. You ‘lock in’ an exchange rate now for a specific time in the future, which enables you to plan for and budget your business expenses with more certainty.

Flexible forwards

Flexible forwards provide protection against adverse exchange rate movements while giving you the opportunity to benefit from favourable exchange rate movements.

Currency options

A currency option provides the buyer of the option with the right (but not the obligation) to buy or sell one currency amount at a specified exchange rate on a specified date.

 

To find out more about your currency risk management options, contact us today.

Contact your Relationship Executive

 

Email us

Call us on 13 1998

 

 

Important information

  • As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on it, consider its appropriateness to your circumstances.
  • The products mentioned on this web page are issued by the Commonwealth Bank of Australia, view our Financial Services Guide.
  • Product Disclosure Statements (PDSs) for these products should be considered before making any investment decision.
  • Currency Risk Management products are sophisticated financial products which involve dealing in foreign exchange and, in some cases, dealing in derivatives. Before transacting in any such product you should be satisfied that the relevant product is suitable for you in view of your objectives, and your financial situation and needs. Unless you are familiar with foreign exchange dealings, derivatives and products of the relevant type, that product may not be suitable for you