How to best determine your FX exposure

  • Post
    Patrick Kunz
    Keymaster
    NL
    In this blog post by GPS capital there are 4 steps mentioned to determine your FX exposure. It’s all about data gathering and structuring.

    However, this might not always be possible or feasible in every company. What is the data is not structured or can be agregated. Or the data is just not there and you have to use projections?

    Happy to hear your struggles and solutions in determine effectively and efficiently your FX exposures.

    Treasurers help each other out here.

    Treasury for champions
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  • Replies
    Danilo
    Participant
    Hi,

    All data ideally has to be collected at risk identification level or latest at the point in time the risk is materialized (e.g. when the contract is signed). The question is, what is the source of truth to obtain this data including monetary items, balance sheet, sales orders, purchase orders, AP, AR and defined future inflows/outflows milestones?

    Cheers

    Danilo

    Rafael Reno
    Participant
    When data is lacking, accurate forecasting using available tools and models is crucial. A solid foundation, diverse experience, and decision-making flexibility are essential. As we say in Brazil “If you don’t have a dog, hunt with a cat.”

    Cheers,

    Rafa

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