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FX Initiative Blog

Actionable insights on foreign exchange risk management from FX Initiative.

Happy New Year 2021 from FX Initiative!

Happy New Year from FX Initiative!

FX Initiative is thankful for your support throughout 2020, and we wish you a safe and successful 2021!

 

Happy Holidays from FX Initiative!

Happy Holidays from FX Initiative!

Thank you for your continued support and partnership. We look forward to working with you in the years to come. Wishing you peace, joy, and prosperity this holiday season!

 

FX Initiative End-of-Year Feedback

FX Initiative End-of-Year Feedback: Help us enhance your experience using FX Initiative in 2021 and beyond! Thank you for supporting our mission throughout 2020 to teach FX risk management best practices. Please share what you like about our FX training and how we can do better.

Take our short survey here: https://www.fxcpe.com/feedback >

 

Webinar Series: Multilateral Netting

Program Overview

FX Initiative cordially invites you to attend our webinar titled “Multilateral Netting” on Thursday, December 10th, 2020 at 11AM Pacific / 2PM Eastern. Join us and learn the fundamentals of multilateral netting for intercompany cash flows. This Multilateral Netting webinar will help you learn the fundamentals of multilateral netting. Multilateral netting, also referred to as intercompany netting, is a process in which a group of cashflows between a defined set of entities are offset against each other such that just a single cashflow to or from each entity takes place to settle the net result of all cashflows. When a multinational company has divisions in a number of countries, direct billing in many currencies can lead to excessive foreign exchange (FX) trading, resulting in both buying and selling the same currencies many times over. This educational program will help participants learn the concept of multilateral netting for managing intercompany cash flows, how netting operations are centralized and cyclical, how netting can reduce payment volume and save FX costs, as well as several key treasury related benefits of deploying multilateral netting.

Learning Objectives
  1. Identify the concept of multilateral netting for managing intercompany cash flows.
  2. Explore how global intercompany netting operations are centralized and cyclical.
  3. Discover how multilateral netting can reduce payment volume and save FX costs.
  4. Recognize several key treasury related benefits of deploying multilateral netting.
Who Should Attend?

New and seasoned finance, accounting, treasury, and related professionals (CPA, CIA, CRMA, CFE, etc.) interested in international business.

December 2020 Newsletter

December Professional Development: Read our December newsletter and discover the latest blog posts and insights from FX Initiative on currency risk management. We help finance, accounting, treasury, and sales professionals stay up to date with new training content, CPE webinars, and helpful tips & resources.

Scale the learning curve quickly and easily with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training >

 

Happy Thanksgiving from FX Initiative!

Happy Thanksgiving from FX Initiative! We’re thankful for our wonderful team members and clients.

To our valued team members, we are grateful for all you’ve done for our business this year. All of your hard work, dedication, and resilience has helped us reach our organization’s goals for 2020. On this holiday, we want to make sure you know how much you’re appreciated as a member of our team and how much we value your contributions.

To our valued clients, we want to share our genuine appreciation with you. Without you, we would not be where we are today, and we’re so thankful for all of your support throughout unprecedented times in 2020. We hope you have a joyous holiday and we look forward to serving your foreign exchange risk management needs well into the future.

On behalf of FX Initiative, we wish you, your family, and loved ones a wonderful Thanksgiving holiday.

Webinar Series: Balance Sheet Hedging

Program Overview

FX Initiative cordially invites you to attend our webinar series. Join us and learn how to hedge FX receivables & payables and mitigate FX gains & losses. This Balance Sheet Hedging webinar will teach you how to hedge foreign exchange (FX) receivables and payables to mitigate FX gains and losses on the Income Statement. We will begin by defining the concept of a balance sheet hedge, and explore why is it often viewed as the foundation of many corporate FX risk management programs. We will break down the impact of how FX receivables and payables, which are known as underlying positions, produce FX gains and losses on the financial statements from mark-to-market accounting treatment. We will then explore how to offset those underlying FX gains and losses on the Income Statement by hedging with forward contracts to reduce periodic earnings volatility. Finally, we examine best practices for optimizing balance sheet hedges by considering details such as accounting booking rates, netting of exposures, and adjusting hedges as balances change from cash inflows and outflows.

Learning Objectives
  1. Discover the concept of a foreign exchange (FX) balance sheet hedge program.
  2. Recognize how FX receivables and payables impact the financial statements.
  3. Explore how forward contracts can be used to mitigate FX gains and losses.
  4. Identify best practices for optimizing and adjusting balance sheet hedges.
Who Should Attend?

New and seasoned finance, accounting, treasury, and related professionals (CPA, CIA, CRMA, CFE, etc.) interested in international business.

November 2020 Newsletter

November Knowledge & Networking: Read our November newsletter and discover the latest blog posts and insights from FX Initiative on currency risk management. We help finance, accounting, treasury, and sales professionals stay up to date with new training content, CPE webinars, and helpful tips & resources.

Scale the learning curve quickly and easily with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training >

 

Webinar Series: FX Forward Contracts

Program Overview

FX Initiative cordially invites you to attend our webinar series. Join us and learn what forward contracts are and why they are the most used derivative. This FX Forward Contracts webinar will explain what forward contracts are and why they are the most used foreign exchange (FX) derivative among multinational corporations. We begin with a basic understanding of over-the-counter (OTC) foreign currency derivatives that are sold by commercial banks as part of their international treasury and risk management products. We will then delve into the fundamentals of forward contracts, including long and short positions and forward point premiums and discounts. Additionally, we will examine the payoff profile of a forward contract and review the economic cash flow and financial reporting implications. To conclude, we will look at the overwhelming popularity of forward contracts using the Bank for International Settlements (BIS) FX data as well as highlights from the annual reports (10-K) of several multinational corporations that deploy forward contracts to hedge currency risk.

Learning Objectives
  1. Discover the concept of over-the-counter (OTC) foreign currency derivatives.
  2. Identify what forward contracts are and how forward points are calculated.
  3. Recognize the payoff profile, economics and accounting of forward contracts.
  4. Explore why forward contracts are the most used FX derivative by corporations.
Who Should Attend?

New and seasoned finance, accounting, treasury, and related professionals (CPA, CIA, CRMA, CFE, etc.) interested in international business.

Webinar Series: FX Risk Management Policies

Program Overview

FX Initiative cordially invites you to attend our webinar titled “FX Risk Management Policies” on Thursday, October 15th, 2020 at 11AM Pacific / 2PM Eastern. Join us for a continuing professional education (CPE) program and earn CPE credit as we learn how to draft a corporate foreign exchange risk management policy. This FX Risk Policy webinar will address the basics for drafting a foreign exchange risk management policy. We begin with best practice policies for pricing and booking foreign exchange (FX) transactions that enable a corporation to retain the FX risk rather than the customer, supplier or vendor. We then discuss how FX personnel, resources and operations are incorporated into a policy document that serves as a guideline for managing foreign exchange risk. Furthermore, we will cover the essential elements of a formal written FX risk management policy, including which FX exposures to hedge, how to handle counterparty credit risk, segregation of duties (SOD), internal controls, and reporting among other areas. Lastly, we will observe how FX risk policy language is disclosed in corporate annual reports (10-K) using the Securities and Exchange Commission (SEC) filings of multinational corporations as real-world examples.

Learning Objectives
  1. Discover best practice policies for pricing and booking foreign exchange (FX) transactions.
  2. Recognize how to incorporate FX personnel, resources, and operations into a policy document.
  3. Identify the essential elements of a formal written corporate FX risk management policy.
  4. Explore how FX risk policy language is disclosed in corporate annual reports (10-K).
Who Should Attend?

New and seasoned finance, accounting, treasury, and related professionals (CPA, CIA, CRMA, CFE, etc.) interested in international business.