Leading the conversation on FX risk management
OSTCFX have been helping businesses to understand and minimise their foreign exchange (FX) exposure for five years. We have now changed our name to Godi, derived from the Welsh word Codi, which means rising up or blooming, reflecting both our roots in Wales and our global reach and outlook. And the birth of Godi comes just when British SMEs are most in need of sound, expert advice about how to manage uncertainty in the context of global trade.
The triggering of Article 50 means Britain’s relationship with the EU and the rest of the world is in the process of changing. Whatever happens, UK businesses will continue to export and import, and to work in partnership with overseas companies, but the nature of the trade deals that will shape those relationships remains uncertain.
Speculation about what kind of deal the UK will get, coupled with volatility in the Eurozone itself, mean that sharp movements in the currency markets are going to be the new normal. Deutsche Bank recently suggested Sterling could fall by as much as 15% by the end of 2017, but others feel it will actually benefit from a decisive break from the EU.
Either way, SMEs do not have to be the passive victims or beneficiaries of such volatility. For example, well-prepared businesses can protect themselves from the effects of currency fluctuations between a deal being agreed and the goods delivered. As Godi’s managing director Paul Langley explains: “There’s a preventative medicine, which involves making foreign exchange a fixed cost to your business, hedging as far forward as you can and limiting your potential liabilities to numbers you are comfortable with”.
Godi not only offer competitive and fully transparent rates in FX, but also the expertise to help SMEs think strategically about the currency markets as part of their long-term business planning. Godi’s educational offer is more than advice on minimising risk on the next overseas deal. It is an invitation to think differently, to recognise that FX risk is part of doing business in an uncertain world, and that a prudent strategy provides a competitive edge.
Businesses that make FX planning part of their long-term strategy put themselves in a far stronger position than those that leave currency matters to the market. In Paul Langley’s words, “So many businesses are simply sitting on their hands and waiting to see what happens. Business leaders need to take control now to help create more certainty for their organisations during these turbulent times. Being prepared and planning appropriately should be a priority, not ignored.”
That’s why Godi invite SMEs not only to get in touch to discuss their particular FX needs, but also to join the conversation by following us on social media. It’s risky out there: let’s talk about it.