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CurrencyVue Pulls SMEs Into FX Hedging CurrencyVue is helping Australian SMEs enter into the world of FX risk mitigation.   Read the full article here   Reports Wednesday (March 22) said the firm has created an FX platform designed for smaller businesses. With plans to launch the platform later this year, CurrencyVue will link into SME banking and accounting systems as they step onto a global stage, helping them reduce exposure to...

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International trade and associated services have been dominated by banks for years. Yet recent changes in this industry have made it ripe for disruptors and innovators aiming to capitalise on the inefficiencies of current systems and practices. We examined some interesting start-ups and early stage businesses innovating in this space:   1.       Fluent   Fluent have developed a cloud based network that enables real time, low cost, simple and secure...

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For most businesses that have an FX Hedging program, the two most common forms of FX risk are transaction risk and translation risk   Transaction risk will arise from a business transaction that generates a foreign exchange cash flow.  For example, an Australian business that buys inventory from a UK supplier will have an exposure to the AUD/GBP cross rate.  In this case the business will likely create...

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Businesses use hedge coverage ratios to measure the amount of hedging cover they have over time periods.  These ratios may be may be explicitly contained within a FX hedging policy or may be calculated and implemented informally. Generally speaking, businesses involved with international trade will hedge on forecasted transactions or committed transactions (invoice or purchase orders) and the longer out the forecast the less they will...

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Strategy and tactics are two distinctly separate things.  Strategy involves planning the company’s next move.  Tactics involves putting that plan in to action.  Strategy is doing the right things – tactics is doing things right. Most blog articles from large banks and FX providers mix up the two.  They describe hedging products such as forward contracts, options etc. as hedging strategies that can be used to...

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Exchange rate volatility is not a new concept to the CFO or CEO of a business involved in international trade but as more and more businesses trade across boundaries and open up new markets, its impact is gaining more and more attention. As part of the usual start of year process of budgeting CFO’s will no doubt be locking in their plans for 2016.  The reality...

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For startups and small business, it has never been easier to take online payments from your customers. Previously businesses had to set up and get approval to set up special bank accounts and merchant facilities. Now companies such as Stripe and Braintree make it really simple to create an account and with a bit of development work from your developer, you can have a payment gateway integrated in to your...

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Sydney Startup CurrencyVue helps SME's identify FX risk By Liz Leigh Read the full article here   The Foreign Exchange (FX) industry is highly competitive, though mostly dominated by the big four banks. When dealing in FX markets SMEs are at a significant information disadvantage and often small investors experience large losses on their trading accounts due to unpredictable market movements. The volatility of the FX market can have a...

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Rod Drury, the CEO of cloud accounting software Xero  recently introduced their concept of the ‘financial web’ which they envisage will not only be the next revolution in SME financing but more broadly will herald a new wave of startups that will completely transform the way businesses function.   Boasting a client base of over 10 percent of businesses in Australia and 25 percent of businesses in...

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