Cash Flow Hedging

Cross Border Payments
Intercompany Netting
Cash Flow Hedging
Balance Sheet Hedging

Cash Flow Hedging

PROTECT YOUR CASH FLOW FROM FX CURRENCY FLUCTUATIONS

In our increasingly interconnected global economy, foreign exchange rate fluctuations have a significant impact on companies’ financial performance. To mitigate this risk and ensure greater stability in cash flows, companies benefit by implementing cash flow hedging strategies.

GPS’ FXpert platform gives you a comprehensive and real-time understanding of your global cash flow and allows you to forecast across all entries with multiple currencies.

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BENEFITS OF CASH FLOW HEDGING

Cash flow hedging strategy provides certainty about the value of future cash flows, allowing you to confidently set a budget rate and plan with greater accuracy. Our expert advisors will help you:

  • Quantify and analyze the potential impact of currency fluctuations on your company’s cash flow portfolio.
  • Evaluate your risk appetite to determine the extent of hedging required.
  • Define the objectives of your cash flow hedging program.

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Improve Financial Planning and Decision Making

  • See forecasted versus actual entries to compare and reconcile effectiveness of forecasted cash flow hedging program.​​
  • Make multiple payments from forecast hedges, so you have the flexibility to pay multiple beneficiaries from same hedge.​
  • Forecast across all entities with multiple currencies and centralize treasury’s view of global cash flow.​

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ADVANCED AND EMPOWERING STRATEGIES

By using financial derivatives such as forward contracts, companies can lock exchange rates for future transactions involving foreign currencies. Even though the transaction happens later in the year, you will know the rate for the transaction ahead of time.

FXpert offers static, rolling, or layered hedging programs, empowering companies to tailor strategies for risk management and confident decision-making.

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OPTIMIZE WITH INTUITIVE FX REPORTING

GPS’ reporting capabilities allow you to see your forecast versus actual entries to compare and reconcile the effectiveness of your forecasted cash flow hedging program and optimize for better risk mitigation.

FXpert’s settlement reports give you upfront transparent pricing visibility on which to base your hedging strategies. The platform also provides you with more accurate and stable financial statements, ensuring your reporting is in line with regulatory requirements.

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