Protect Your Business From Currency Risk

An FX risk assessment reviews expected foreign currency payments and receipts, the dates and confidence level of those cash flows, current pricing assumptions and the impact of adverse rate movements. MTFX then discusses possible coverage levels, tools and decision rules with your team.

The right solution depends on whether the amount and date are firm, how much of the exposure you want to cover and how much flexibility you need. A forward contract may suit a confirmed future commitment, while spot transactions, orders or alerts may be more appropriate for immediate or less certain requirements. A blended strategy can also be considered.

Pricing depends on the currency pair, amount, timing, market conditions and product selected. Before you transact, MTFX will provide the quoted exchange rate and explain any applicable charges, deposit requirements or contract terms so your business can review the full arrangement.

Minimum amounts and eligibility can vary by service, product and account profile. Share your expected transaction size and annual currency needs during the risk review, and MTFX will confirm which options are available.

Yes, a business may choose to cover only a portion of an eligible exposure and leave the balance available for spot transactions or another strategy. The coverage level should reflect forecast confidence, cash-flow tolerance and the consequences of an adverse market move.

Yes. A business may use forward contracts for firm future commitments and spot transactions for immediate needs, variable amounts or the uncovered portion of an exposure. The mix should be reviewed as payment dates and amounts change.

It is helpful to provide the currencies, expected amounts, payment or receipt dates, transaction frequency, forecast confidence, existing contracts and the rate movement your budget can absorb. Invoices, purchase orders or receivable schedules may also help clarify the underlying exposure.

Timing depends on account onboarding, compliance checks, the information provided and whether a product requires approval. The process begins with a review of the exposure, followed by confirmation of available solutions and applicable terms before any transaction is booked.

Recurring payments can often be planned in advance. Understanding the amount, timing and frequency of those payments can help determine whether spot transactions, staged hedging, forwards or other FX tools may be appropriate.

Corporate FX risk management involves identifying, measuring and managing the financial impact foreign-exchange movements can have on a company's costs, revenue and cash flow.

Start by calculating your upcoming foreign-currency payments and receivables and then model how a 1%, 3% or 5% change in the exchange rate would affect their Canadian-dollar value.