Predictable budgets are a desirable part of any business plan. Benefits ripple through the entire organization when you know what to expect. Unfortunately, foreign exchange markets can present a great challenge to this goal. Take the example of a biotech firm that needed to pay a 5 million Euro invoice on December 1, 2006.Despite factoring in significant room for currency fluctuation when they set their budget several months earlier, market movement exceeded their worst projections. When the invoice came due, they missed their budget by $150,000.

Fortunately, you don’t have to leave your budget exposed to the market. Ruesch International offers you a full slate of means to protect yourself against this risk.

Forward Contracts allow you to lock in a rate of exchange for delivery of funds on a future date. Once a rate is secured, the settlement currency equivalent is fixed for the duration of the contract, thereby protecting your profits from erosion. Because rates can be locked in up to a year in advance, companies can monitor the market for favorable rates and secure funds for upcoming needs.

By securing forward contracts, you have funds available within a designated time period, at a fixed, known cost. Apply them directly to specific invoices and check another task off your list, or have a pool of funds available at your disposal for ad hoc needs. If you are waiting for invoices, hold your currency in a Foreign Currency Holding Balance.

Risk Management services at Ruesch International — Free yourself to focus on your business, not the markets.