What Are OANDA’s Best Forex Practices?
OANDA has been a leader in the foreign exchange market since 1996. Based on our involvement in the forex market over many years, we have developed a Best Forex Practices framework for corporations to manage their foreign exchange exposure and create cost and revenue certainty.
Why a Best Practices Forex Strategy?
Conducting business in today’s global marketplace results in exposure to foreign currencies—no company can avoid foreign currency volatility. Whether selling products or services in a foreign market or purchasing supplies or components from a supplier in another currency, your company should approach foreign currency management in a methodical manner. Similar to the tried and tested best practices for managing your company’s cash or payables or receivables, there are Best Forex Practices to manage foreign currency exposures.
What Is a Best Practices Forex Strategy?
An effective Best Practices forex strategy includes all of the following requirements:
Policy and Personnel—Board-approved policies, properly educated personnel, and thorough vetting of counterparty risk.
Data Capture—Accurate accounting reports and solid data capture.
Effective Forex Trading and Reporting—Centralized tracking, effective reporting, and uniform accounting policies and procedures.
Operational Issues—Clearly defined responsibilities with regular management reviews.
How Can FXConsulting Help?
OANDA’s FXConsultants offer a framework to build sustainable business processes into your operations. This framework has four major themes and eleven key areas to address foreign exchange management. We consider everything from overall forex policy (including Board approvals), to capturing foreign currency exposure data, to internal controls related to matching and recording foreign currency hedging transactions.
Our Best Forex Practices framework will enable you to fulfill your responsibility for managing foreign currency transactions. Start focusing on growing your company, not worrying about foreign currency losses.
