Exchange risks on foreign currencies
We still see economies suffering worldwide and stock markets still very volatile. South-Europe has problems with the budget deficits causing pressure on the Euro. U.S. is in anticipation of the presidential elections in November, but it is unclear how this will impact the dollar? Japan has continued uncertainty with respect to their basic economy and China’s economy will grow less compared to previous years.
How will this influence the exchange risks between these world currencies? Certainly the volatility will increase and the risks in the exchange rates will increase significantly. Do you have these risks identified and do you have controls in place to manage this?
We advise you to check this so you are not negatively affected by the potential Forex movements in the next (half) year.