Deregulation, emerging markets and globalisation have increased the impact of currency fluctuations on the bottom line - and likewise, the need to manage currency exposures actively. However, many companies are discovering that their existing processes, systems and reporting are not particularly effective in spotlighting their most critical currency exposure. Within the forest and paper sector, the effects of currency fluctuations have been especially damaging for non-US companies with sales denominated in US dollars and costs in domestic and other currencies.
But armed with the right structure, processes and systems, the Treasury function can work with the operational side of the business to actively manage currency fluctuations risks. The key is make sure that all decisions (including country production or sourcing, contractual terms, financial hedging and the use of derivatives) adequately account for a range of currency fluctuation scenarios. As with most things, the key is having the right information to enable currency risk to be managed at both a strategic and transactional level.
How PricewaterhouseCoopers can help you
Our professionals help clients understand their specific currency risks and develop appropriate strategies, processes, systems and reporting that enable transparent and effective management of these risks. Our Global Corporate Treasury Solutions team, with a presence in the world’s major business centres, comprises more than 150 professionals with combined corporate treasury, banking, technology, and tax skills. The team has recently been voted “Best Treasury Consultant” for the 4th consecutive year by "Treasury Management International", a leading European Treasury journal.
