Foreign Exchange
PNC offers a full range of FX services
PNC offers a full range of FX services
Risk Management Product Sheet
Foreign exchange hedging tools can help you manage foreign exchange risk more effectively, secure pricing and costs, and potentially increase profits and reduce expenses. PNC's dedicated team of senior foreign exchange consultants can help you identify exposures and determine the appropriate risk management tools to effectively hedge global risk, enabling you to benefit from favorable market conditions.
Customized solutions include:
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:
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.
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:
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:
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:
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:
Atlanta: 1-855-852-4700
Boston: 1-888-627-8703
Charlotte: 1-855-543-4026
Chicago: 1-866-245-4696
Cleveland: 1-800-622-7400
Dallas: 1-855-852-4700
Denver: 1-844-763-0006
Detroit: 1-800-362-1066
Houston: 1-713-345-1580
Indianapolis: 1-800-622-7410
Los Angeles: 1-833-540-1286
Milwaukee: 1-844-290-1442
Philadelphia: 1-888-627-8703
Pittsburgh: 1-800-723-9106
San Francisco: 1-888-891-5265
Washington, D.C.: 1-877-856-6957
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