Interesting article highlighting the need for both a financial risk management strategy and a operations product pricing / purchasing strategy as part of an effective foreign exchange risk strategy.

The need for effective protection of an export / import business through transfer of currency risk and or purchasing raw materials in the same currency that you trade with your end customer in is discussed.


Historically I would have tended to focus more on the financial risk management element but going forward I will give more thought and weight to the elements of  operational strategy in managing Foreign currency exposure.

The article is quite informative. Foreign exchange flactuations ate very common especially with the unstable world economic situation we are experiencing. Brexit has also worsened the problem. African countries are heavily exposed to these movements and companies operating in the continent need to come up with measures to mitigate the risks.

I will look forward for opportunities to use the knowledge gained in this article.