CurrencyCast Travel Edition: Key takeaways
Kantox: Currency and Risk Management Solutions
by Kantox
2y ago
Recently, Marc Padrosa, Kantox’s Global Industry Director for Travel, sat down with us to discuss Currency Management Automation solutions for OTAs, bed banks, hotel chains, airlines and DMCs and other travel industry participants. It was a lively debate centred around the topics elaborated in our latest Travel Report. The main points of the conversation were: The ongoing trend toward business process automation in Travel Pricing solutions in a very dynamic environment The strategic importance of currencies Currency hedging programs for players in the Travel industry Here, we’ll ..read more
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Why forecast accuracy is not as important as you think in 2022
Kantox: Currency and Risk Management Solutions
by Kantox
2y ago
Don’t worry, be happy — at least when it comes to the degree of forecast accuracy in your FX risk management programs. In this article, we will explain why a high degree of forecast accuracy is not necessary for successful FX risk management.   Why are forecasts not required in micro-hedging programs? In our CurrencyCast episode on the FX Risk Map, we mentioned the journey of a typical FX-denominated commercial transaction, travelling back from the settlement in cash to the issuance of the corresponding invoice, then to the firm sales/purchase commitment, and finally to the forecast ..read more
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Pricing smartly with favourable forward points
Kantox: Currency and Risk Management Solutions
by Kantox
2y ago
Are you prepared to price with the forward FX rate? Many companies fail to take advantage of the benefits of pricing with the forward rate in the event of favourable forward points — that is, when selling and hedging in a currency that trades at a forward premium, or when buying and hedging in a currency that trades at a forward discount. This is an important and rather technical subject, so it might be helpful to clarify it with an example.  A South African Tour operator selling packages into the UK market Let us imagine the case of a South African tour operator sell ..read more
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Treasury resources optimization by automation
Kantox: Currency and Risk Management Solutions
by Kantox
2y ago
This article was written by François Masquelier, and has been reposted with permission. It was originally published on his LinkedIn blog on the 16th of February 2022. You can find it here. When human resources (FTE’s) are scarce, and many treasury departments are in this situation, the only solution is creativity applied to maximize process automation. We are never as automated as we think we are. Challenge the way you have done things so far and ask yourself how to do them more efficiently. The best way to reduce risks and to scale up is to automate the most manual processes. The hardest ..read more
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How to Map Currency Risk
Kantox: Currency and Risk Management Solutions
by Kantox
2y ago
According to the recent 2021 Citi Treasury Diagnostics survey: “Corporates are now conducting comprehensive policy and ERP/TMS technology reviews with the main question being asked by senior managers: when, where and how does currency risk emerge?” The FX risk map is a useful tool that allows us to provide answers to these fundamental questions. Toni Rami, Kantox Chief Growth Officer says: “Mapping currency risks is an essential first step in defining, selecting, and implementing risk mitigation solutions […] If you can’t measure it, you can’t manage it”. The FX risk map and the ‘when’ questio ..read more
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The Do’s and Dont’s of Pricing with an FX Rate
Kantox: Currency and Risk Management Solutions
by Kantox
2y ago
Give up your time-driven rules for pricing with an FX rate and go for a data-driven approach instead! In this article, we are going to highlight the challenges faced by treasurers as they seek to manage pricing risk. According to Toni Rami, Kantox’s co-founder and Chief Growth Officer: “Understanding pricing is perhaps the most crucial element in order to design a great FXRM program.” Pricing risk Pricing risk is the risk that —between the moment an FX-driven price is set and the moment it is updated— shifts in FX markets can impact either a firm’s competitive position or its profit margins ..read more
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How to Map Currency Risk
Kantox: Currency and Risk Management Solutions
by Kantox
2y ago
According to the recent 2021 Citi Treasury Diagnostics survey: “Corporates are now conducting comprehensive policy and ERP/TMS technology reviews with the main question being asked by senior managers: when, where and how does currency risk emerge?” The FX risk map is a useful tool that allows us to provide answers to these fundamental questions. Toni Rami, Kantox Chief Growth Officer says: “Mapping currency risks is an essential first step in defining, selecting, and implementing risk mitigation solutions […] If you can’t measure it, you can’t manage it”. The FX risk map and the ‘when’ questio ..read more
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The top challenges that will affect your FX risk strategy in 2022
Kantox: Currency and Risk Management Solutions
by Kantox
2y ago
1. Shifting interest rate differentials across currencies Let’s start with the first of our challenges that will affect your FX risk strategy in 2022, namely shifting interest rate differentials across currencies. This is the result of central banks reacting to inflation and inflation expectations. This will, in all likelihood, lead to increasing differences between FX rates with different value dates—also known as forward points. Central banks from a wide range of countries have adjusted their short-term interest rates in 2021, and more are set to act in 2022: Chile, Brazil, Czech Republic ..read more
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Kantox and Monneo form new cross-border payments partnership
Kantox: Currency and Risk Management Solutions
by Kantox
2y ago
Virtual IBAN and corporate account provider Monneo, has formally announced its partnership with Kantox, a global leader in currency management automation software. The partnership will give Monneo’s customers additional flexibility when managing outgoing payments. With its innovative currency management automation technology, Kantox helps businesses to fully automate and streamline their end-to-end FX workflow, allowing firms to be better protected from risk and helping to increase their competitiveness. The new partnership means Monneo can now offer an additional automated solution to those u ..read more
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The four expectations of Currency Management Automation
Kantox: Currency and Risk Management Solutions
by Kantox
2y ago
 With FX volatility intensifying and exposing companies to even greater currency risk, treasurers & CFOs are faced with many challenges as they look to step up their FX risk management strategy. The key to this is currency management automation, but what are the critical problems an automated solution needs to solve to become a worthwhile tool in your treasury kit? The four main expectations of currency management automation for CFOs and treasurers are: 1. The need to improve time management 2. To remove operational risks 3. To improve the efficiency of treasury operations 4. To place ..read more
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