Don’t let global risks affect your bottom line.
Foreign exchange volatility is one of the most difficult and frustrating aspect of doing business internationally. It fluctuates constantly and can either increase profits or result in losses.
Many of our assignments related to foreign currency exposure begin by assisting a client to identify their FX exposures and their timing. Integral to most foreign currency hedging programs is a parallel accounting solution. We design all hedging programs with an eye towards accounting issues, and this is especially true in foreign currency hedges since their market values can be volatile. We assess the client’s risks, his objectives and constraints to determine which hedging option offers the best risk management solution.
Examples of foreign currency hedges include:
- A domestic manufacturing company hedging against falling international currencies in their primary selling markets.
- A company who has purchased a foreign competitor and wants to lock in an exchange rate while waiting for due diligence to complete the sale.
We have extensive experience in:
- Foreign Currency Denominated Sales and purchases
- FX Loan and Bond Hedging
- Net Investment hedging
- Forwards, Options, Collars
- Non-deliverable currencies
Our relationship with the client is not limited to arranging an appropriate hedging strategy and its execution. We will further assist the client in a range of accounting and valuation services associated with the hedge. We want to ensure each unique client implements the right derivative, at the right price, on the best terms.
In addition, DAG assists the client ease the burden of complex reporting standards by supplying all necessary documentation and data from initial hedge designation, hedge inception documentation, and effectiveness testing, to ongoing journal entries, shock analyses, sensitivity analyses, and more.
DAG is not just an agent to execute your hedge; we strive to establish an on-going partnership to exclusively represent your interests.