Foreign Exchange Risk Management

Foreign Exchange Risk is the exposure to potential financial losses due to the devaluation of foreign currency against the U.S. dollar. As more and more credit worthy foreign customers demand payments be made in their local currencies, your company needs an effective way to mitigate this risk.

To survive and prosper in volatile market conditions, you need a financial partner that can help you hedge currency risks. UniBank can provide you with the right tools and professional account management to minimize the risk of fluctuations in foreign exchange rates and other issues that may come up in your day-to-day

Manage foreign exchange transactions such as:

  • Unexpected changes in currency exchange rates
  • Lost payments
  • Delayed confirmation of payments and receivables
  • Discrepancies between bank drafts received and the contract price

The right tools to help your business prosper

Massachusetts-based UniBank provides you a suite of tools for managing currency risk that include:

  • Foreign currency contracts that allow you to lock in a fixed price
  • StopLoss Orders allow you to set a price at which point you wish to close your position
  • Limit Orders allow you to limit the maximum price you pay
  • Flexible order sizes allow you to accurately set the capital you wish to commit to each trade
  • Hedging & Closing Trades allows you to select which orders to close rather than first in first out (FIFO) 

Learn more

For more information about Foreign Exchange Risk Management and how it can help your business run more cost efficiently, please contact your relationship manager, or call the Cash Management Department for a complimentary evaluation at 800.578.4270.