Foreign Exchange Exposure Definition

Foreign exchange exposure

Foreign exchange exposure refers to the risk a company undertakes when making financial transactions in foreign currencies. All currencies can experience periods of high volatility which can adversely affect profit margins if suitable strategies are not in place to protect cash flow from sudden currency fluctuations. Exchange rate risk can usually be managed through effective, preemptive hedging.

When supply chain payments or critical accounts are based in foreign currencies, companies may choose to employ a targeted currency strategy to minimise foreign exchange exposure. These strategies usually involve contracts that allow companies to lock in an exchange rate for an extended period of time, often up to one to two years.

OFX is a leader in deliverable foreign exchange and international payments and delivers a range of solutions tailored specifically to the needs of our strategic partners.

Why International Payment Solutions?

  • Build new revenue stream or augment an existing revenue stream
  • Add value by providing international payments as an ‘add-on’ service for your customers
  • Our payment solutions require minimal capital investment
Features
Experience OFX has a successful track record for implementing its International Payment Solutions to a variety of partners globally, including Macquarie, ING, Travelex and MoneyGram.
Solutions Our tailored set of solutions range from a fully outsourced end-to-end deliverable foreign exchange and international payments through to basic web integration for pricing and delivery
Speed OFX can efficiently add a deliverable foreign exchange and international payments offering in a very short timeframe - 8 weeks from contract signing.
Platform With 10+ years of development, OFX has created a proprietary platform that is extraordinarily robust and provides the concrete foundation for our partnership solutions.