Foreign Exchange Risk Management

Helping your business eliminate uncertainty and meet its objectives.

If your business is trading internationally, you may generate revenues in different currencies. This will expose you to foreign exchange rate risk, where adverse currency movements may reduce or eliminate the margin you earn on the underlying transaction. At Allied Irish Bank (GB), we will help you to fully understand your foreign exchange exposures and guide you on how to best minimise your currency risk. We offer competitive pricing and innovative and relevant risk management solutions tailored to your business needs.

 

There are two main types of foreign exchange risk management products available:

 

1. Spot Foreign Exchange: an immediate Foreign Exchange Deal that is settled two working days later. This type of transaction can be managed by leaving market orders with the trading desks.

  • --------------------Start of Accordion---------------------------

    Features & Benefits

    • We provide a proactive service to keep you informed of any economic data or market moves.
    • Take Profit Orders – an option to set an order rate which we will execute when the spot market reaches your desired level.
    • Stop Loss Orders - an option to set an order rate which we will execute if there is an adverse move and the spot market triggers the execution.  The order provides a worst case dealing rate at a time when there is an adverse market move.

    --------------------End of Accordion---------------------------

 

 

2. Forward Foreign Exchange: you can arrange to take delivery of one currency in exchange for another at a fixed rate on a future date, with no cash flow impact until maturity. This is available on a fixed basis (where the total amount is settled at maturity) or on an option basis (where a portion or all is settled any time between the start date and the maturity date, must be utilised in full by maturity).

  • --------------------Start of Accordion---------------------------

    Features & Benefits

    • Eliminates uncertainty – you can establish in advance the rate to be applied to a future transaction.
    • Removes the potential for adverse foreign exchange rate movements.
    • Enables you to plan and manage future exchange rate exposures in a structured manner thus reducing risk to adverse market moves.
    • Allows your company to concentrate on its core business, rather than on daily exchange rate movements.

    --------------------End of Accordion---------------------------

--------------------Start of Accordion Container---------------------------

Click on edit button to enter Accordion Header

-------------------End of Accordion Container---------------------------

Talk to Us

Simply call +44 (0)20 7309 3170 (lines are open Monday to Friday 8am to 5pm excluding Bank Holidays). We’ll be happy to answer any questions you might have about our Foreign Exchange Services.

 

You can write to us at:

 

Allied Irish Bank (GB)

Customer Treasury Services

St Helen’s

1 Undershaft

London

EC3A 8AB

 

 

Help and Guidance

 

Help Centre

For all service related queries please visit our Help Centre.

 

 

Related Products