When looking to protect against currency fluctuations, forecasting exchange rates is never an exact science, especially in the light of ongoing Brexit talks, trade tensions and a global economic slowdown. However, in times of extreme uncertainty there are actions businesses can take to reduce these risks. Stephen Hubble, Chief Analyst at treasury management specialist Centtrip, outlines five of them:
Simplify your bank account structure: Adopt account structures that match your business flows and reduce the number of accounts you have where possible. Today’s technology like Centtrip’s allows you to simplify your bank account’s structures by holding one multi-currency account – with a bespoke “sub-account” hierarchy for centralised cash management – and provides you with tailored reporting options to view specific business activities and transactions in real time.
Free up your time and liquidity through automation: If you hold cash in different currency accounts, you may be exposing your business to increased risk of currency fluctuations. (…)
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