Administración del riesgo cambiario

A contractual obligation to buy from or sell a fixed amount of foreign currency on a future maturity date at a predetermined exchange rate.

Advantages include:

• Mitigate currency risk, as foreign exchange costs are determined upfront.
• Establish contracts to match your organization’s cash flows — a requirement to qualify for ASC hedge accounting treatment.
• Set up delivery dates to match your cash flows.
• Contracts are available in any freely convertible currency.

• Forward contracts are firm obligations so they should only be used in situations where there is a firm or definitive commitment or exposure.
• You have no ability to participate in favorable rate movements.

• Importers that purchase goods or services overseas and pay in a foreign currency
• Exporters that sell merchandise outside the United States and are paid in a foreign currency
• Organizations that receive foreign-denominated dividends or royalties
• Businesses that invest in foreign securities or make capital infusion payments and/or are involved in a foreign acquisition where the exchange of payment will not be in U.S. dollars

Forward contracts can be customized in a variety of ways. All forward contracts protect against adverse currency fluctuation by locking in an exchange rate. However, customized product structures provide for flexibility in timing and hedging opportunities in regulated markets.

• Window forward— Allows you to select a time frame (typically 30 days) during which you can draw down and make payment from an existing contract at the pre-agreed-upon exchange rate.
• Non-deliverable forward— Allows you to hedge foreign currency risk where no traditional forward market exists. It is a synthetic type of hedge that is net settled in U.S. dollars. No delivery of foreign currency will occur under this type of forward contract.

Global business exposure may motivate you to hedge your currency risk; however, you want the opportunity to achieve some benefit from a favorable move in the currency markets. A collar or enhanced collar, which can be structured with no upfront premium, may be the answer.

Advantages include:

• Usually structured with no upfront premium
• Provides full protection (a floor) against adverse currency movements
• Allows participation in favorable currency moves up to a predetermined level (a cap)

• Floor is less attractive than the forward rate.
• Participation in favorable market movement is limited.

• Importers looking to reduce the cost of foreign payables
• Exporters looking to increase the value of foreign currency receivables
• Businesses that need to protect their budget at a defined rate, while benefiting from favorable currency moves
• Businesses that need to accommodate different views on currency direction, yet still meet hedging requirements
• Businesses that want to take advantage of positive currency fluctuations but do not want to pay a premium upfront

Your company protects against a strengthening euro by executing a collar with a 1.10 floor and 1.15 cap expiring in 3 months. If at expiry the EUR spot is:

• Above 1.15, you purchase EUR at 1.15
• Below 1.10, you purchase EUR at 1.10
• In between this range, you purchase EUR at the prevailing market rate

Global business exposure may motivate you to hedge your currency risk, but you still want the opportunity to benefit from a favorable move in the currency markets. A participating forward contract may be the answer.

Overview of a Participating Forward Contract:

• Usually structured with no upfront premium.
• Provides full protection (a cap or floor) against adverse currency movements.
• Provides benefit from favorable currency moves on the participated portion of your exposure.
• Participation level can be customized

• Cap (or floor) is less attractive than the forward rate.
• Best utilized when a substantial favorable currency move is expected but otherwise carries a higher breakeven than a range forward contract.
• Provides protection against unfavorable currency fluctuations, while allowing limited participation in favorable market movements up to a predetermined level or cap.

• Importers looking to reduce the cost of foreign payables
• Exporters looking to stabilize the value of foreign currency receivables
• Businesses that need to protect their budget at a defined rate, while benefiting from favorable currency moves
• Businesses that need to accommodate different views on currency direction, yet still meet hedging requirements
• Businesses that want to take advantage of positive currency fluctuations with no upfront premium

Your company protects against a strengthening euro by executing a participating forward contract with a 1.15 cap and a 50% participation level expiring in 3 months. If at expiry the EUR spot is:

• Above 1.15, you purchase 100% of your EUR at 1.15.
• Below 1.15 (for example, 1.05), you purchase 50% of your EUR at 1.15 and the balance at 1.05, creating a blended rate of 1.10.